International Bank of Qatar (ibq) has said its debut five-year $500mn bond issue was oversubscribed, indicating strong response from international, regional and local investors.
The bond issue comes under its $2bn euro medium term note programme, said a spokesman of IBQ. However, the bank did not disclose the size of the oversubscription.
“Market conditions are today particularly difficult, and the fact that our deal was oversubscribed is a testimony to the trust and confidence of the international investor community in IBQ, and more broadly, in Qatar’s economic outlook,” the bank’s managing director Omar Bouhadiba said.
The transaction was its first fund raising in global capital markets, which made it more challenging, he said, adding the bank’s stability, conservative approach and focus on service quality were the prime factors for the success in bond issue.
The notes were issued by IBQ Finance, a wholly-owned ibq subsidiary in the Cayman Islands and unconditionally guaranteed by the parent organisation.
The bond, which is the first public bond issue by IBQ and listed on the Irish Stock Exchange, has been rated “A2” by Moody’s and “A ” by Fitch.
The issue was jointly managed by Citigroup, QNB Capital and Standard Chartered Bank. UNB was co-lead manager.