DUBAI, April 2 (Reuters) - Commercial Bank Of Qatar (CBQ), which is buying a majority stake in Turkish lender Alternatifbank, has picked two banks for the potential issue of a bond aimed at boosting its capital, two sources familiar with the matter said.
CBQ, the Gulf state’s third-largest bank by market value, has hired Morgan Stanley Inc and Bank Of America Merrill Lynch for the sale of a Tier 1 bond, the sources said, speaking on condition of anonymity as the matter is not public.
Tier 1 capital is the main measure of a bank’s financial strength.
One of the sources said CBQ was aiming to sell a benchmark-sized bond, which is typically at least $500 million in size. CBQ was not immediately available for comment.
Last month CBQ agreed to buy a 70.8 percent stake in Alternatifbank in a deal valued at $460 million.