Doha: Borrowers and investors across the Gulf region are adjusting to a new landscape following the region’s biggest-ever bond sale.
Qatar sold $9 billion of Eurobonds in three maturities on Wednesday, comprising $3.5 billion in five-year notes at 120 basis points over US Treasuries, the same amount in 10-year bonds at 150 basis points over Treasuries and $2 billion of 30-year paper at a 210 basis-point spread. The issue was almost double the size expected by analysts.
“For guys like Saudi and Kuwait, and everybody else who has announced potential deals, it definitely means it’s very doubtful they would do anything for at least the next three or four months,” said Abdul K Hussain, who helps oversee $1.5 billion as the chief executive officer of Mashreq Capital DIFC Ltd. in Dubai.
Qatar’s deal brings Middle Eastern sales this year to almost $30 billion. Energy-exporting nations are borrowing internationally following a halving of oil prices since 2014 which has forced some governments to raid reserves. Qatar is also in the second year of a $200 billion infrastructure upgrade ahead of hosting the 2022 soccer World Cup. Moody’s Investors Service rates Qatar Aa2, the third-highest investment grade.