Doha: QNB Group, the largest financial institution in the Middle East and Africa, stated that the recently announced $2bn unsecured syndicated term loan facility aims at extending the bank’s financing maturity and
diversifying its funding sources.
In a statement to Qatar News Agency (QNA), the Group explained that the facility carries a five-year maturity and saw participation from a number of Asian financial institutions, including banks from Taiwan, China, Japan, Korea, and Mauritius.
QNB Group further noted that the interest rate on the facility is highly competitive, considering the size and duration of the transaction.
In light of fluctuating interest rates and expectations that the US Federal Reserve will implement three to four rate cuts this year, QNB Group noted that syndicated loans, such as the one it has recently secured, typically carry variable interest rates, positioning the Group to benefit from any future decline in rates.
Regarding the possibility of securing additional loan facilities during the current year, the Group stated that it maintains sufficient liquidity to meet its financing requirements.
However, it remains open to exploring opportunities as they arise.
Should suitable financing options become available in terms of duration and pricing, the bank will consider them accordingly.
QNB Group is present in more than 28 countries across three continents, with more than 31,000 employees operating through 900 locations and more than 5,000 ATMs.