Qatar issues $3 billion in US dollar-denominated bonds

Qatar has issued $3 billion in US dollar-denominated sovereign bonds, split into two tranches maturing in five and ten years.

In a statement on Monday, the Qatari Ministry of Finance said the issuance included a $1 billion tranche maturing in five years and a $2 billion tranche maturing in ten years. The five-year tranche was priced at a spread of 55 basis points over US Treasury yields, while the ten-year tranche was priced at a spread of 65 basis points over US Treasuries.

The initial price guidance was set at 85 basis points for the five-year tranche and 95 basis points for the ten-year tranche. Strong investor demand pushed total orders to a peak of $7.7 billion, allowing the pricing spread to be tightened by 30 basis points for both tranches.

The bond offering was 2.5 times oversubscribed at peak demand, attracting a diverse investor base from Asia, Europe, the Middle East, and the United States.