Qatar's Doha Bank to launch $426m local rights issue

Qatar's Doha Bank will launch the first phase of a two-part capital increase, a QAR1.55bn (US$425.7m) rights issue to local investors, on February 28, the lender said on Thursday. Capital levels at Qatar's fifth-largest bank by market value are lower than its Qatari peers and proceeds from the issue are expected to be used mainly to plug that shortfall. The issue, which is equivalent to 50 percent of its total shares, will be split equally between a local offering and global depositary receipts (GDRs) in London. The first stage will be an offering of 51.7m new shares to current stockholders which will begin on February 28 and run until March 13, Doha Bank said in statement after shareholders approved the move.