Mubasher: Qatar will likely announce a $10 billion international bond issue within the coming days, people with knowledge of the matter told Reuters on Tuesday.
Such a debt issue would be the largest by an emerging-market sovereign in 2019, exceeding Saudi Arabia’s $7.5 billion bond issue in January, the news agency said.
The gas-rich nation has no need to raise funds as its government forecast a QAR 4.3 billion ($1.18 billion) budget surplus in 2019, on the back of rising oil prices.
However, the Qatari government plans to take advantage of the improved debt market conditions and provide a benchmark for state-run entities that aim to sell bonds.
“Appetite should be ample, market conditions are very favourable at the moment as recent new issues this year in emerging markets have illustrated, with a massive about-turn compared to the fourth quarter of 2018,” CreditSights' emerging markets strategist Richard Briggs said.
Qatar’s $2.5 billion sovereign bond and $5.5 billion syndicated bank loan will mature in December 2020.
A banking alliance including Standard Chartered has been selected to lead the new debt issue, while Barclays is projected to be among the deal's leaders, informed sources told Reuters.
