DOHA: In a significant move to bolster its financial positioning, the State of Qatar, through the Ministry of Finance, has successfully priced its dual tranche issuance of senior unsecured bonds in the 144A/Reg S spectrum.
The issuance comprises a three-year bond valued at $1 billion and a 10-year bond amounting to $2 billion, reflecting an astute approach to capital markets underpinned by robust demand.
The three-year bond, priced at Treasuries plus 30 basis points, offers a profit rate of 4.50 per cent, while the longer-term 10-year bond is set at US Treasuries plus 45 basis points, with a profit rate of 4.875 per cent.
Strong market confidence
The considerable investor interest, evidenced by order books exceeding $7.5 billion—and notably excluding joint lead manager (JLM) interests—demonstrates strong market confidence in Qatar’s creditworthiness.
Qatar’s bonds benefit from favourable ratings, with an Aa2 from Moody’s and AA ratings from both S&P and Fitch, all reflecting a stable outlook. These ratings play a crucial role in attracting both institutional and retail investors, underscoring the stability and strength of Qatar’s financial framework.
The bonds will be listed on the London Stock Exchange, facilitating greater visibility and accessibility for global investors. The appointment of esteemed banks as global coordinators and joint lead managers—including JP Morgan Securities plc, QNB Capital LLC, and Standard Chartered Bank—further cements the transaction’s credibility and execution proficiency in the capital markets.
