$3 Billion Dual-Tranche Bond Sale by Qatar Draws Strong Investor Demand

Qatar has successfully completed a dual-tranche US dollar-denominated bond issuance, raising a total of $3 billion. The transaction was carried out through the Ministry of Finance and consisted of a 5-year conventional bond and a 10-year conventional bond.

The deal was split into two tranches: a $1 billion tranche maturing in five years with a pricing of 55 basis points over US Treasuries, and a $2 billion tranche maturing in ten years priced at 65 basis points over US Treasuries. Initially, the price targets were set at 85 basis points for the 5-year tranche and 95 basis points for the 10-year tranche.

According to the Ministry of Finance, the issuance drew strong demand from both existing and new investors, reflecting confidence in Qatar's financial stability, its strong financial position, and its solid medium-term economic growth outlook. The orderbooks reached a peak of $7.7 billion, allowing for a price tightening of 30 basis points on both tranches.

The joint global coordinators for the transaction were Goldman Sachs International, HSBC, J.P. Morgan, QNB Capital, and Standard Chartered Bank. Joint lead managers included Credit Agricole CIB, Deutsche Bank, Mizuho, MUFG, Santander, and SMBC.