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The State of Qatar, acting through the Ministry of Finance, completed a dual-tranche conventional bond sale that combined a $1 billion five-year note with a $2 billion 10-year note, according to an official statement. The five-year tranche priced at a spread of 55 basis points over US Treasuries while the 10-year tranche priced at 65 basis points over comparable Treasuries. Initial price targets had been set at 85 basis points and 95 basis points respectively, with the ministry noting that robust demand permitted a 30 basis point tightening on each maturity before final allocation.
The Ministry of Finance said the transaction attracted a diversified pool of investors from Asia, Europe, the Middle East and the United States, encompassing both established accounts and new participants in the deal. Orders reached a peak of $7.7 billion, rendering the $3 billion issuance 2.5 times oversubscribed at the height of interest. The outcome reinforced Qatar’s standing among the highest-rated sovereign borrowers in emerging markets, reflecting investor confidence in the country’s financial position and medium-term growth prospects.
QNB Group announced that its investment banking unit, QNB Capital, acted as global coordinator on the transaction alongside Goldman Sachs International, HSBC, J.P. Morgan and Standard Chartered Bank as joint global coordinators. Credit Agricole CIB, Deutsche Bank, Mizuho, MUFG, Santander and SMBC participated as joint lead managers, the ministry’s statement showed. The bonds were priced on September 21, enabling the sovereign to achieve a new-issue premium of only five basis points above fair value on both tranches.
The five-year notes carried a coupon of 5.25 percent and a yield to maturity of 5.38 percent while the 10-year notes featured a 5.375 percent coupon and 5.613 percent yield to maturity, according to details released with the announcement. The five-year portion drew an order book exceeding $2 billion, more than twice the issued amount. Demand for the 10-year tranche surpassed $4 billion, likewise representing more than double the supply offered.
A Bloomberg report issued the day after pricing indicated the sale represented Qatar’s first public international bond offering of the year and occurred against a backdrop of fiscal pressures stemming from regional conflict. LNG export revenues, the country’s primary income source, fell sharply in the second quarter as disruptions linked to the US-Iran war and Strait of Hormuz closure affected shipments. The government maintains substantial financial buffers, including a sovereign wealth fund exceeding $500 billion and foreign exchange reserves above $70 billion.
The Ministry of Finance highlighted that the strong reception for the bonds underscored international recognition of Qatar’s economic stability and solid fiscal management. Such issuances form part of the sovereign’s regular engagement with global debt capital markets to meet funding needs while maintaining a diversified investor base. The transaction was conducted under the country’s existing global medium-term note programme and settled in standard fashion for international sovereign deals.
