Qatar returns to the bond markets with a 3-part offering

By BLOOMBERG

DUBAI • Qatar, known for its jumbo debt offerings, is returning to international capital markets with a three-part dollar bond sale.

It isn’t clear how big the issuance will be, but if the US$9 billion (RM36.81 billion) Qatar raised in 2016 and its US$12 billion offering last year are a guide, the gas-rich nation will likely go big.

The sale yesterday will include the following, according to a person familiar with the matter who declined to be identified:
• A debt maturing in March 2024 at a yield premium of about 110 basis points (bps) over US Treasuries;
• 2029 bonds at a spread of about 160bps; and
• 2049 securities at around 200bps.

Emerging-market borrowers are racing to soak up renewed appetite for risk, boosting sales to US$336 billion in 2019, a record on a year-to date basis, according to Bloomberg league tables. Qatar’s neighbour and rival Saudi Arabia sold US$7.5 billion of international bonds in January.

The world’s biggest exporter of liquefied natural gas, whose debt carries the fourth-highest investment grade at S&P Global Ratings, last sold bonds in April. The country was weighing plans to tap international bond markets to cement its status as a regular issuer, people with knowledge of the matter said last month.

Barclays plc, Credit Suisse Group AG, Credit Agricole CIB, Deutsche Bank AG, QNB Capital and Standard Chartered plc are arranging the sale. The bonds will be listed between Luxembourg and Taipei. — Bloomberg