Corporate bonds

Qatar corporate bonds receive overwhelming response from global investors

Qatar corporate bonds have received an overwhelming response from international investors, especially given the inherent strength of the national economy.
“Recent past issuances have seen an oversubscription in the order book, proving to the point that these entities derive their strength from a robust local economy, amid the challenges of the Covid-19 pandemic,” a source said. of the market at Gulf Times.
Building on trends in corporate earnings (in the second quarter) and the recovery of the non-hydrocarbon private sector, he said the corporate sector was able to benefit from the underlying macroeconomic fundamentals of the economy (Qatari).
Qatar’s strong fiscal reserves and reform programs have been seen as positive by global investors.
Emphasizing that Qatar’s economy has weathered the pandemic and falling oil prices relatively well; The US-based Institute of International Finance said it expects a modest economic recovery in 2021, driven by strengthening oil and gas prices and a recovery in domestic demand.
“This (the oversubscription) reflects the general consensus that Doha is rapidly becoming an investment destination,” the source said.
The flexible rate regime in the United States and Europe has also helped businesses while offering debt instruments, he said.
Commercial Bank said yesterday that its $200-250 million syndicated loan, aimed at Asian investors, had been oversubscribed and so it had opted to keep up to $450 million in the facility.
The $12.5 billion bonds of Qatar Petroleum, the country’s oil baron, were more than three times oversubscribed.
The Qatar Financial Center (QFC), in its latest capital market report, said strong global investor demand for Qatari debt, coupled with near-zero interest rates, amid accommodative bond markets , offered Qatari companies an opportunity to raise at low cost. dollar-denominated debt to finance M&A transactions (mergers and acquisitions) as part of the wave of consolidation expected in certain sectors.
Earlier this year, QNB Group, the largest financial institution in the Middle East and Africa, received a strong response for its $1 billion fixed rate bond issue.
“The Reg S issue has attracted strong interest from investors worldwide and was organized by Crédit Agricole CIB, HSBC, Mizuho, ​​QNB Capital and Standard Chartered Bank (together co-lead managers) “, had declared QNB.
In 2020, Ahlibank Qatar’s five-year bond, which carried a coupon rate of 1.875%, was significantly oversubscribed more than three times with orders from over 122 investors in Europe, Asia, the UK , the Middle East and North Africa.
QNB launched its first benchmark green bond issue last year and the first-ever green bond issued by a Qatari bank; it was also oversubscribed.