Commercialbank of Qatar, the largest private sector bank in Qatar, today announces its participation in the Government of Qatar’s proposal announced on 8 March 2009 in which the Government offered to buy part, or all, of the Qatar DSM equity investment portfolios of eight local banks.

Commercialbank has decided to take up the Government’s offer and has sold its entire portfolio of Qatar equities which had a net book value of QR 937.9 million at both 31 December 2008 and 28 February 2009.  The Government will pay QR 417.8 million in cash and provide a five-year bond of QR 520.1 million which carries a coupon of 5.5%.  The Bank has the right to re-purchase the entire portfolio, or any part of it, after a twelve month period from the date of sale and within a maximum period of five years at the original sale price.

Andrew Stevens, Group Chief Executive Officer commented: “The sale of the listed Qatar equity portfolio to the Government offers additional certainty and security in these challenging financial markets.  We thank the Government of Qatar for their decisive action in supporting the Qatar banking sector.”