Qatar eyes dual-tranche Islamic bond

Qatar eyes dual-tranche Islamic bond

Qatar-plans-to-spend-49-billion-in-2012-13

The Gulf Arab state of Qatar is planning to issue a two-tranche Islamic bond, or sukuk, four sources familiar with discussions said on Monday, as it kicked-off investor meetings in Malaysia.

July 9, 2012 4:56 by Reuters

The Gulf Arab state of Qatar is planning to issue a two-tranche Islamic bond, or sukuk, four sources familiar with discussions said on Monday, as it kicked-off investor meetings in Malaysia.

The world’s largest liquefied natural gas exporter is holding roadshows in Kuala Lumpur and Singapore on Monday and Tuesday respectively, arranging banks said last week, following which a sukuk may be issued, subject to market conditions.

No indication of size was made available, which is usually determined depending on investor feedback and appetite.

But market sources in the Gulf said demand for a sukuk from Qatar, one of the highest-rated regional credits as well as one of the world’s wealthiest nations, would be high, allowing the state to print a large deal.

Its last debt markets outing was a $5 billion multi-tranche conventional bond in November, which attracted orders of about $10 billion.

Qatar has hired HSBC Holdings, Deutsche Bank , Standard Chartered Plc and local lenders Barwa Bank and QInvest to arrange the investor meetings.

The sukuk is scheduled be this week’s business, according to the initial mandate announcement.

(Reporting by Rachna Uppal and Mala Pancholia; Editing by David French)