Qatar Raises $4bn in Two-Part Debt Issue
Gulf state taps global debt markets to achieve more favorable pricing than initially indicated.
Qatar, known for being one of the world's leading exporters of liquefied natural gas, has successfully entered the global debt markets by issuing a two-tranche bond worth $4 billion.
The issuance attracted substantial order books, enabling the Gulf state to secure more favorable terms than initially anticipated.
The sovereign issued a $1 billion three-year bond at 15 basis points over US Treasuries and a $3 billion Islamic bond, or sukuk, with a 10-year tenor priced at 20 basis points above the same benchmark.
According to lead managers' documents, the hefty order books totaling $13.5 billion allowed Qatar to substantially tighten pricing from earlier guidance.
Qatar's fiscal health remains under scrutiny, as in the second quarter of 2025, it posted a budget deficit of 757 million riyals ($208 million).
This arose due to increased public spending and lower oil revenues.
The Gulf nation had previously tapped the debt markets in February, raising $3 billion.
The strong global appetite for debt instruments coupled with attractive borrowing costs has encouraged several Gulf sovereigns to seek funding sources.
These funds are intended to help refinance existing debts, cover budget deficits, and support ambitious economic diversification plans.
A team of international banks assisted Qatar in this debt issuance.
Deutsche Bank, Goldman Sachs International, QNB Capital, and Standard Chartered Bank acted as global coordinators.
Additional joint lead managers included Santander, Citi, Emirates NBD Capital, ICBC, IMI-Intesa Sanpaolo, and SMBC for the conventional bond issuance.
For the sukuk, Citigroup, Deutsche Bank, QNB Capital, and Standard Chartered Bank served as global coordinators alongside Al Rayan Investment, Dubai Islamic Bank, Emirates NBD Capital, Goldman Sachs, Islamic Corporation for the Development of the Private Sector, IMI-Intesa Sanpaolo, and KFH Capital.
The issuance attracted substantial order books, enabling the Gulf state to secure more favorable terms than initially anticipated.
The sovereign issued a $1 billion three-year bond at 15 basis points over US Treasuries and a $3 billion Islamic bond, or sukuk, with a 10-year tenor priced at 20 basis points above the same benchmark.
According to lead managers' documents, the hefty order books totaling $13.5 billion allowed Qatar to substantially tighten pricing from earlier guidance.
Qatar's fiscal health remains under scrutiny, as in the second quarter of 2025, it posted a budget deficit of 757 million riyals ($208 million).
This arose due to increased public spending and lower oil revenues.
The Gulf nation had previously tapped the debt markets in February, raising $3 billion.
The strong global appetite for debt instruments coupled with attractive borrowing costs has encouraged several Gulf sovereigns to seek funding sources.
These funds are intended to help refinance existing debts, cover budget deficits, and support ambitious economic diversification plans.
A team of international banks assisted Qatar in this debt issuance.
Deutsche Bank, Goldman Sachs International, QNB Capital, and Standard Chartered Bank acted as global coordinators.
Additional joint lead managers included Santander, Citi, Emirates NBD Capital, ICBC, IMI-Intesa Sanpaolo, and SMBC for the conventional bond issuance.
For the sukuk, Citigroup, Deutsche Bank, QNB Capital, and Standard Chartered Bank served as global coordinators alongside Al Rayan Investment, Dubai Islamic Bank, Emirates NBD Capital, Goldman Sachs, Islamic Corporation for the Development of the Private Sector, IMI-Intesa Sanpaolo, and KFH Capital.
