– the largest order book globally since its bond sale last year and the latest indication of how the country has overcome a boycott imposed by some of its Arab neighbors.
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It was not clear where most of the demand came from, but the high volume showed that despite a lack of demand from Gulf countries, hampered by the boycott, international investor demand remained strong.
“The political environment in the region remains challenging, however we would expect this bond to have support and buying interest out of Asia, Europe and other Western countries,” said Theodore Holland, senior portfolio manager at Fisch Asset Management.
The $2 billion five-year notes offer 90 basis points over US Treasuries, while the $4 billion 10-year and the $6 billion 30-year debt offer 135 bps and 175 bps respectively over the same benchmark, a document issued by one of the banks leading the deal showed.
Earlier price indications were 20 bps higher for the five-year tranche and 25 bps higher for the longer tranches.
The initial guidance looked “attractive,” said Sergey Dergachev, senior portfolio manager at Germany-based Union Investment, offering some 30 basis points of new-issue premium – the price an issuer is ready to pay over its existing bonds to attract demand for the new issuance.
Barclays, Credit Agricole, Credit Suisse, Deutsche Bank, QNB Capital and Standard Chartered have been hired to arrange the five- and 10-year notes.
The Taiwanese branches of Credit Agricole, Deutsche Bank and Standard Chartered are joint bookrunners for the 30-year tranche, which is a Formosa bond – a type of debt security sold in Taiwan by foreign issuers and denominated in currencies other than the Taiwanese dollar.
Four of the banks leading the deal have Qatari ownership and there was no U.S. or Japanese bank among the bookrunners.
International banks with significant business ties to Saudi Arabia have been treading cautiously since the Qatar boycott started in 2017, sidestepping public Qatari deals.
A source familiar with the issuance said that the fact that Qatar chose as arrangers the same banks of its previous issuance, in April last year, reflected an extension of existing banking relationships.
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