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Doha Bank Sells DSM Equity Portfolio to Government

DUBAI - Doha Bank, one of the largest private commercial bank in Qatar, has completed all the necessary formalities towards the sale of the identified DSM equity portfolio to the government in a $147 million (QR 537 million) deal.

This is part of the government’s proactive measure to infuse liquidity in the market to support the ongoing developments of Qatar and the related financing needs.

“In this regard, the government has paid $66 million (QR 239 million) in cash and $81 million (QR 298 million) by way of issue of 5-year government bond carrying a fixed coupon of 5.5 per cent annually,”said R. Seetharaman, Chief Executive Officer, Doha Bank.

“The DSM equity portfolio sold by us to government net book value as at February 28, 2009 stood at $147 million (QR 537 million) and we also have the right to repurchase this entire portfolio, or any part of it, after a minimum period of 12 months from the date of sale and within a maximum period of 5 years at the original sale price,” said Seetharaman. The bank’s announcement comes in light of the State of Qatar government’s decision to purchase the DSM investment portfolios of local banks and Qatar Central Bank informing that the government had bought $1.8 billion (QR 6.5 billion) worth of local bank’s investment portfolios.

business@khaleejtimes.com