Qatar will tap the markets to sell two tranches of debt on Monday

Qatar, one the world's largest exporters of natural gas liquefied, will tap into global debt markets on Monday for a conventional and Islamic bond issue in two tranches, according to an official document.

The Gulf State released early price indicators for a 3-year issue, at 45 basis point over U.S. Treasuries, and at 55 basis point over Treasuries, for a sale of 10-year Islamic bonds, or sukuk.

Both will be of a benchmark size, which is typically $500 million.

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. This was a successful move that led to a tightening of pricing.

In recent weeks, several other Gulf sovereigns issued debt as a result of the strong global appetite for borrowing and attractive borrowing rates. Governments eager to plug their budget deficits and diversify their economies were able to increase funding sources.

Deutsche Bank, Goldman Sachs International and QNB Capital are the global coordinators for this bond issue. Santander Capital, Citi, Emirates NBD Capital ICBC, IMI Intesa Sanpaolo, and SMBC were also appointed as joint lead managers.

Citi, Deutsche Bank and QNB Capital are 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. They also include Goldman Sachs and Islamic Corporation for the Development of Private Sector. (Reporting and editing by Thomas Derpinghaus; Rachna uppal)

(source: Reuters)