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Qatar Seeks Return to Debt Market

Qatar Seeks Return to Debt MarketQatar Seeks Return to Debt Market

Qatar will start investor meetings from Monday as the country, boycotted by some of its Arab neighbors, plans its first dollar-denominated bond sale in more than two years.

Officials will meet investors in the US and Britain this week and the government is working with Credit Suisse Group AG and Deutsche Bank AG on the offering that could include five-, 10- and 30- year notes, according to people familiar with the matter, Bloomberg reported.

Al Khaliji France SA, Barclays Plc, Credit Agricole CIB, Mizuho Securities Co., QNB Capital and Standard Chartered Plc are also involved, they said.

Qatar last sold bonds internationally in 2016 when it raised $9 billion. Officials met fixed-income investors in Asia last month to test the appetite for a potential bond, people said at the time.

Qatar, whose debt carries the fourth-highest investment grade at S&P Global Ratings, expects its budget deficit to shrink this year as the economy absorbs the impact of the boycott. The state has a $1 billion bond maturing in 2019, according to data compiled by Bloomberg.

Saudi Arabia, the United Arab Emirates, Bahrain and Egypt cut diplomatic relations and closed transport routes with Qatar in June, accusing it of funding terrorism, a charge the country denies. Mannai Corp., a Doha-based company with businesses spanning from oil to travel, is holding investor meetings for a dollar deal.

Oil-exporting countries across the (Persian) Gulf Cooperation Council region are tapping debt markets to bolster public finances after crude prices slumped. Qatari borrowers have been raising funds through private placements since the standoff began. Qatar National Bank has sold debt in yen, renminbi, formosa and dollars.

 

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