Qatar's Commercial Bank expects to issue $500 million bonds

Qatar's Commercial Bank expects to issue bonds worth $500 million in the first or second quarter of 2020, Chief Executive Joseph Abraham said on Sunday. Qatari banks, traditionally reliant on foreign funding, have sought to tap a greater variety of investors after Qatar became locked in a diplomatic dispute with Saudi Arabia, the United Arab Emirates, Egypt and Bahrain in mid-2017.

"I think it's a good time (to sell bonds) because the interest rates have gone down and there is good appetite for Qatar," Abraham told Reuters on the sidelines of a conference in Doha. The Federal Reserve has cut interest rates three times this year, but signalled in late October its rate-cutting cycle might now pause.

Abraham said he expects 5% loan growth in 2020 for his bank, similar to the pace seen so far this year. Commercial Bank, the country's third-largest bank by assets, has been looking to sell its 40% stake in Abu Dhabi-listed United Arab Bank (UAB), after sale talks stalled last year.

"We are continuing to manage that business as a continuing part of our business," Abraham said. "We are very clear if we don't get the price we're looking for we're not interested in discussing."