al khaliji and Commercial Bank extend QAR 1.26 Billion financing to Al Rayyan Road construction project
Doha, Qatar – 07 February 2015: Al Khalij Commercial Bank (al khaliji) Q.S.C and The Commercial Bank of Qatar (Q.S.C) (“Commercial Bank”) have successfully concluded a combined financing arrangement of QAR 1.26Bn. The contract financing facilities is for the project awarded to joint venture between Dogus Insaat ve Ticaret A.S (Dogus Construction) and Onur Taahhut Taşımacılık ve Ticaret Ltd. for the construction and development of the Al Rayyan Road project.
al khaliji and Commercial Bank are financing the QAR 3.43Bn project on a mutual basis in which both banks are the Joint Mandate Lead Arrangers while Commercial Bank will be acting as the facility and security agent.
“We are delighted to have Commercial Bank as our partner in financing Al Rayyan Road project which is part of Qatar’s road building program designed to improve the overall road infrastructure in the country.“ Said Mr. Fahad Al Khalifa, al khaliji’s Group Chief Executive Officer. “al khaliji continues to focus in playing a key role in the country’s development and progression.” he added.
Commercial Bank CEO, Mr. Abdulla Saleh Al Raisi, commented “We are pleased to partner with al khaliji in financing this joint deal of QR1.26 Bn. Commercial Bank has been a strong advocate of contract financing to fund Qatar’s huge infrastructure investments as part of supporting robust Qatari economy due to a combination of strong market demand and achieving Qatar 2030 vision. This is a testament to Commercial Bank’s strategy, financial strength and prudent management.”
Dogus Insaat ve Ticaret A.S. was established in Turkey in 1966 and is one of the leading construction companies in Turkey, with diversified activities in infrastructure projects and superstructure projects including roads, motorways, railways, dams and hydroelectric power plants, tunnels, bridges, viaducts-over and under passages in metro, ports, irrigation, waste treatment, desalination, drilling project management and civil engineering. The Dogus Group operates in nine sectors including automotive, banking and finance, construction, media, tourism, energy, real estate, entertainment, and new investments.
The Al Rayyan road project is one of the major projects awarded by the Public Works Authority “Ashghal” under the expressway program within the roads & infrastructure development. It is a significant infrastructure project designed to connect the South of Doha with the North, East and West. The project is part of the country’s road building program intended to reduce congestion, journey times, environmental impacts and improve the flow of traffic to accommodate the influx of visitors during the 2022 FIFA World Cup and position Qatar as a business hub.
Within the scope of the project, Doğuş Construction and Onur Taahhut will handle the construction and development works of a 5.3 km section, where the total length of Al Rayyan Road is 10.7 km. The project includes the construction and upgrading of Al Rayyan Road that stretches from the West of the Olympic Roundabout to the West of the New Al Rayyan Roundabout, as well as the associated side and service roads.
Notes to Editors
About Commercial Bank
Commercial Bank has total assets of QAR 114 billion as at 30 September 2014. As a full service commercial bank, the Bank offers a full range of corporate, retail and investment banking services as well as owning and operating exclusive Diners Club franchises in Qatar and Oman. The Bank’s countrywide network includes 31 full service branches and 152 ATMs.
Profitable every year since incorporation in 1974, continual investment in technology and human capital, together with a strong capital base, provides a solid foundation for continued growth. A successful diversification strategy has expanded Commercial Bank’s GCC footprint through strategic partnerships with associated banks, the National Bank of Oman (NBO) in Oman and United Arab Bank (UAB) in the UAE. NBO, the second largest bank in Oman with total assets of OMR 3.4 billion as at 30 September 2014, has 62 branches in Oman and 1 branch each in Egypt, Abu Dhabi and Dubai. UAB is headquartered in Sharjah, with total assets of AED 25.2 billion as at 30 September 2014, and operates 28 branches across the emirates in the UAE. Building on the successful execution of the Bank’s expansion strategy to date, Commercial Bank completed the acquisition of a majority stake in Alternatifbank in Turkey in July 2013.
Commercial Bank enjoys strong credit ratings of (A) from Fitch, (A1) from Moody’s and (A-) from Standard & Poor’s. The Bank is listed on the Qatar Exchange and was the first Qatari bank to list its Global Depository Receipts (GDRs) as well as bonds on the London Stock Exchange. Commercial Bank’s Swiss Franc bond issuance in December 2010, listed on the SIX Swiss Exchange, was the first public bond issuance by a Qatari bank in Switzerland. Commercial Bank’s latest bond issuance in June 2014 is listed on the Irish stock exchange.
