By Davide Barbuscia, Eric Knecht and Saeed Azhar
DOHA, Dec 9 (Reuters) - Qatar's Commercial Bank COMB.QA could raise up to $1 billion in debt next year by tapping a range of various debt instruments, as the country's third-largest lender by assets aims to further diversify its funding sources, the bank's chief executive said.
Qatari banks, traditionally reliant on foreign funding, have sought to tap a larger variety of investors since June last year when Qatar became locked in a diplomatic dispute with Saudi Arabia, the United Arab Emirates, Egypt and Bahrain.
Commercial Bank has around $750 million in debt maturing next year, including bonds and loans, and plans to refinance that debt as "normal course of business," said Joseph Abraham, who added that total debt issuance next year could go up to $1 billion.
He was speaking to Reuters on the sidelines of a financial conference in Doha.
The lender last month hired ANZ and Bank of America Merrill Lynch (NYSE:BAC) to arrange a series of fixed income investor meetings ahead of a so-called Kangaroo bond sale -- debt securities issued by foreign entities in the Australian market denominated in Australian dollars.
Abraham said the bank will look at Kangaroo bonds, but also at the Taiwanese bond market and the Japan bank debt market.
"We might look at more diversified options in terms of geography, tenor, product type, and investor type."
Commercial Bank said on Sunday it signed a $750 million syndicated loan. The bank received $950 million in subscriptions, Abraham said.
Commercial Bank is exploring the sale of its 40 percent stake in Abu Dhabi-listed United Arab Bank UAB.AD , but the CEO said the bank was in "no hurry" to complete the deal.
"We do get indications of interest but we are not going to sell at any price … As of now we're focused on turning the bank around, making sure it delivers greater profit and that will automatically enhance its value," said Abraham.
Commercial Bank has said it is not being pressured to sell as a result of the Gulf rift and is planning to re-invest the proceeds from the sale into its business in Qatar and Turkey, where it owns Alternatifbank. (Editing by Keith Weir)