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Doha, November 06 (QNA) - The State of Qatar has achieved the lowest yield paid by any issuer of bonds and sukuk across Central and Eastern Europe, the Middle East, and Africa (EMEA) in 2025.
It also recorded the lowest yield paid by a sovereign issuer in emerging markets this year, following a dual-tranche U.S. dollar issuance consisting of three-year bonds and ten-year sukuk, with a total value of USD 4 billion.
This milestone reflects the deep confidence international investors place in the stability of Qatar's economy, its robust financial position, and the positive medium-term outlook for its economic growth.
The issuance attracted strong demand from both existing and new investors, further reinforcing Qatar's standing as one of the highest-rated sovereigns among emerging market economies.
The offering included three-year bonds valued at USD 1 billion with an interest rate of 3.625 percent, and ten-year sukuk valued at USD 3 billion with an interest rate of 4.25 percent.
The final pricing resulted in a yield spread of 15 basis points above U.S. Treasury bonds for the three-year tranche and 20 basis points above U.S. Treasury bonds for the ten-year tranche.
Initial price guidance had been set at 45 basis points for the first tranche and 55 basis points for the second, but overwhelming investor demand, peaking at USD 13.5 billion, enabled a tightening of 30 and 35 basis points respectively.
The issuance was oversubscribed by 3.4 times at peak demand, drawing a diverse investor base from Asia, Europe, the Middle East, Africa, and the United States. Credit rating agencies affirmed Qatar's strong sovereign ratings, with Moody's assigning an Aa2 rating, and both Standard and Poor's and Fitch assigning AA ratings, all with a stable outlook.
The three-year bond issuance was managed by global coordinators and joint bookrunners including Deutsche Bank, Goldman Sachs International, QNB Capital, and Standard Chartered Bank, alongside lead managers such as Santander, Citi, Emirates NBD Capital, ICBC, IMI – Intesa Sanpaolo, and SMBC.
The ten-year sukuk issuance was coordinated by Citi, Deutsche Bank, QNB Capital, and Standard Chartered Bank, with lead managers including Al Rayan Investment, Dubai Islamic Bank, Emirates NBD Capital, Goldman Sachs International, the Islamic Corporation for the Development of the Private Sector, KFH Capital, IMI – Intesa Sanpaolo, and QNB Capital. Deutsche Bank and Standard Chartered Bank also served as structuring banks for the sukuk issuance. (QNA)
