Qatar Central Bank (QCB) has launched the second phase of primary dealer (PD) framework and the first auction of local currency government bonds and sukuk saw "significant" oversubscription, reflecting strong investor confidence.

The launch of PD framework also saw the appointment of local primary dealers -- AlRayan Bank, HSBC Bank, Qatar Islamic Bank, QNB and Commercial Bank, marking a key milestone in the development of ongoing capital markets, QCB said in its social media handle X.

The frameworks seeks to strengthen the government securities issuance, enhance secondary market liquidity, and build investor confidence with further opportunities for participantion in future isduances.

The QCB has successfully executed the first auction under the PD framework, issuing local currency government bonds and sukuk, on behalf of the Ministry of Finance.

A total of QR15.43bn was offered and fully allocated across four securities: two year (tap) and five year (new issuance) tranches for both bonds and sukuks.

The auction witnessed significant oversubscription, undergoing strong investor confidence and robust appetite for Qatari riyal instruments despite the substantial issuance volume.