Doha: Qatar, holder of the world's third-largest natural gas reserves, plans to raise 10 billion riyals ($2.7 billion, Dh9.9 billion) in the country's largest sale of local-currency bonds to help develop the domestic market.
The government will offer 5 billion riyals of conventional bonds and 5 billion riyals of Islamic debt, Finance Minister Yousuf Kamal said in the Qatari capital Doha yesterday. The issue is for the "local market and has nothing to do with the international market," he said.
The sale will be the first ny Doha since it tapped international markets in a multi-tranche sale in Nov-ember, raising $7 billion. Qatar is spending billions of dollars diversifying its economy and plans to invest in infrastructure projects, international oil and gas industry, and sports and cultural attractions.
"Qatar is trying to develop its domestic debt markets," said Mohieddine Kronfol, a managing director at fund manager Algebra Capital Ltd. in Dubai. "This sale is a small step forward in creating a much needed yield curve. Qatari banks have liquidity and they need good quality paper."
The government issued 8.4 billion riyals of 10-year bonds in June that paid a 6.55 per cent coupon, according to Bloomberg data. The Qatar Exchange may start bond trading before September as part of a programme to broaden the business it handles, Chief Executive Officer Andre Went had said earlier.
