Qatar sold $9 bln of Eurobonds - BBH

Research Team at BBH, notes that the Qatar sold $9 bln of eurobonds, the biggest bond issuance from the Middle East.

Key Quotes

“The bonds will have three maturities: $3.5 bln in 5-year notes at 120 bp over UST, $3.5 bln in 10-year bonds at 150 bp over UST, and $2 bln of 30-year bonds at 210 bp over UST. The amount was almost double the $5 bln that was reportedly targeted. The deal follows a $5 bln eurobond from Abu Dhabi last month. Middle Eastern issuance now totals more than $20 bln after Qatar’s deal. Saudi Arabia is planning to issue a bond soon, but no details have emerged yet.

There are two important considerations to be made: 1) low oil prices are putting pressure on government budgets, necessitating more borrowing to finance spending and 2) there is an appetite for these bonds from yield-hungry investors.”