By BLOOMBERG

DUBAI • Qatar is considering raising at least US$9 billion (RM38.07 billion) from international bond markets as the gas-rich nation boycotted by its neighbours seeks to replenish state coffers, people familiar with the matter said.

Government officials are in talks with banks to decide on the best time for a possible sale, the people said, declining to be identified. The bond is likely to be in line with or more than Qatar’s last issuance of US$9 billion in 2016, they said.

Qatar, whose debt carries the fourth-highest investment grade at S&P Global Ratings, will target investors in Asia, the US and Europe to make up for a shortfall of regional investors, the people said. Saudi Arabia, the United Arab Emirates, Bahrain and Egypt cut diplomatic relations and closed transport routes with Qatar on June 5, accusing it of funding terrorism, a charge it denies. Some banks in those countries have since cut their exposure to Qatar.

“Investor interest for Qatar exposure from within the region will be subdued,” said Doug Bitcon, Dubai based head of credit strategies at Rasmala Investment Bank. “However, there will be demand from international investors out of the US, Europe and Asia, particularly if an attractive new issue premium is on offer.”

The yield on Qatar’s dollar bonds due 2026 rose five basis points, the most in three months on a closing basis, to 3.51% as of 12:10pm in Doha yesterday, according to prices compiled by Bloomberg.