Qatar sells $4 Billion in a two-part bond issue

Qatar, one of the top LNG exporters in the world, has tapped the global debt markets to raise $4 billion through a two tranche issue. This drew a large order book and allowed Qatar to get favourable prices than originally expected.

Qatar sold a $1bn, three-year, bond at 15 basis over U.S. Treasuries, and a $3bn Islamic bond or sukuk with a tenor of 10 years at 20 basis over the same benchmark.

Fixed income news service IFR reported that orders for the issue had reached $13.5 billion before launch. This allowed the sovereign, which is rated Aa2 by Moody's and AA by Fitch, to reduce its pricing significantly from previous guidance.

Qatar's budget deficit in the second quarter 2025 was 757 million riyals (208 million dollars), as spending on public services increased by 5.7% compared to a year ago and revenue fell due to lower oil prices.

In February, it raised $3 billion on the debt markets.

In recent weeks, several Gulf sovereigns issued debt due to the strong global appetite for debt and low borrowing costs. This allowed governments to increase their funding sources in order to refinance their debts, plug budget gaps, and invest in ambitious plans to diversify the economy.

Deutsche Bank, Goldman Sachs International and QNB Capital were appointed global coordinators for Qatar's bond issuance. Santander was joined as joint lead manager by Citi, Emirates NBD Capital ICBC, IMI Intesa Sanpaolo, and SMBC.

Citi, Deutsche Bank and QNB Capital were the global coordinators for the sukuk, as well as the joint lead managers, along with Al Rayan Investments, Dubai Islamic Bank and Emirates NBD Capital. Goldman Sachs was also involved, as was the Islamic Corporation for the Development of the Private Sector (IMI-Intesa Sanpaolo), and KFH Capital. Reporting by Rachna uppal; Editing and rewriting by Thomas Derpinghaus and William Maclean

(source: Reuters)