Qatar generates largest order book for all EMs in ’18

 16 Apr 2018 - 1:21

Qatar generates largest order book for all EMs in ’18

The Peninsula

DOHA: The Ministry of Finance announced yesterday that the State of Qatar successfully marked its return to international debt markets, pricing a $12bn triple tranche bond, offering $3bn 5-year, $3bn 10-year and $6bn 30-year notes.

The State achieved all-time tightest spreads on the 30-year issuance at T+205 basis points compared to T+210 basis points in 2016, the last time the country tapped the international markets.

The sovereign attracted very strong investor interest globally, with real money type asset and fund managers in Asia, Europe, the US and Mena sponsoring the States largest bond offering to date.

In a milestone achievement, Qatar generated the largest order book for all Emerging Markets in 2018 YTD at $52bn, reaffirming the strength of the States credit fundamentals, its economic resilience, and future potential.

The country has also become the first sovereign to issue a Formosa, dually listing the 2048 offering on the Luxembourg and Taipei stock exchange.

Qatars economic outlook remains positive, with a forecasted growth of 2.8 percent in 2018 and the expansion of its LNG capacity to 100 mtpy by 2023.

Reuters reported Thursday, Qatar’s bond issuance was the largest placement by an emerging market sovereign this year, marking a successful comeback to the international debt markets despite a 10-month-long rift with its Gulf neighbors.

The issuance will be seen as a big success for Doha amid a boycott imposed by Saudi Arabia, the United Arab Emirates, Bahrain and Egypt.Saudi Arabia launched a rival $11bn bond during the same week, in a move seen as an attempt to absorb demand from the market and force Qatar to offer higher yields to attract interest. But the sale in the tiny Gulf state and major gas exporter was heavily oversubscribed.

“The overall success of the issue clearly reflects the strength of the Qatari economy and the confidence the state enjoys from international investors,” Reuters quoted a Qatari government official as saying when asked about the outcome of the bond placement.

Al Khaliji, Barclays, Crédit Agricole CIB, Credit Suisse, Deutsche Bank, Mizuho Securities, QNB Capital and Standard Chartered Bank were joint lead managers and joint bookrunners, according to Reuters.

“The sale, which eclipsed Saudi Arabia’s $11bn bond issued earlier this week, received more than $53bn in bids, including interest from joint lead managers. It was the country’s first public international bond sale since the start of a regional spat in June,” reported Bloomberg.

In its weekly economic commentary issyed Saturday, QNB noted Qatar’s decision to lift the moratorium on the development of the North Field, will help boost Qatar’s economic growth and national income when production comes on stream, probably just after the World Cup 2022.