Doha Bank general assembly approves Tier 1 Capital boost

DOHA: Doha Bank yesterday held its extraordinary general assembly meeting (EGM) and approved the issue of Tier 1 Capital instruments amounting to QR2bn, this was announced by Sheikh Fahad bin Mohammad bin Jabor Al Thani, Chairman of the bank.
These instruments will be treated as equity instruments with a fixed return and will qualify as Additional Tier 1 Capital after the Qatar Central Bank (QCB) terms and requirements are being implemented involving this type of issue.
Sheikh Fahad also said that the issue will be made through private placements by Qatari institutions and the maturity of this instrument will be perpetual. 
The meeting of shareholders unanimously agreed to amend Article No. (3) of the AoA of the bank by adding issue bonds as per the terms and requirements of QCB, issue capital instruments qualifying as additional Tier 1 Capital and trading in gold and precious metals. 
The shareholders of the bank unanimously agreed to issue Tier 1 Capital instruments amounting to QR2bn either directly or through a Special Purpose Vehicle (SPV) as per the terms of the issue which shall include but not limited to the instrument. The issue shall be Tier I Capital instruments qualifying as Additional Tier 1 Capital for Doha Bank in Qatar as per the terms and requirements of QCB. Issue date shall be within one year from the date of EGM approval. The maturity of this instrument shall be perpetual, but callable only after six years and the issue shall be through private placements by Qatari institutions.
The EGM also unanimously agreed to authorise the Board of Directors to determine all the terms and conditions and undertake necessary steps and execution mechanisms for the issue after obtaining the approval of QCB, the Ministry of Economy and Trade and any other competent authorities.
The chairman said that the issuance of these instruments will enhance the bank’s Tier 1 Capital base, strengthen its Capital Adequacy Ratio, and support bank’s prospects for achieving its strategic goals at the local, regional and Global levels. It will also strengthen bank’s lending capacity and improve its competitive edge especially in the light of the anticipated boom in various economic sectors in Qatar in the coming years. 
Asked about the details of gold trading, the bank’s Group CEO Dr R Seetharaman said: “Doha Bank physically import gold and sell it to traders. We do forward trading and also suggest traders, based on market moves, to have forward bookings so that they can hedge the risks in terms of volatile gold prices.”
He also said that with the expected tapering of Quantitative Easing (QE) and bond buying programme in the US, there is a lot of volatility and speculation in the market, so it is good to have a stable and functional price to operate.
The Peninsula