Qatar Petroleum (QP) has raised $12.5bn in a multi-tranche bond offering, which is the largest US dollar fixed rate oil and gas offering and the largest corporate issuance in the Middle East and North Africa region.
QP held a virtual roadshow for its transaction on June 28 and met with over 130 international investors over a two-day period. These interactions resulted in significant interest from global insurers, asset managers, pension funds and bank treasuries, which resulted in a high quality order book with participation from over 500 investors and demand peaking above $40bn.
Strong interest and favorable market conditions together with its outstanding credit ratings helped the country's hydrocarbon behemoth mark a "significant" achievement for an oil and gas company in the global financial and capital markets.
The proceeds from the offering would be used to support QP’s ambitious growth plans, particularly the North Field Expansion (NFE) projects over the coming few years.
The RegS/144A bond offering (sales to investors outside the US in offshore transactions) consists of 5, 10 and 20-year conventional tranches, and a dual-listed 30-year Formosa tranche. It saw the largest corporate Formosa tranche raised globally.
The hydrocarbons behemoth has raised $4bn through a 30-year (coupon 3.3%), $3.5bn each through 20-year (coupon 3.125%), $3.5bn through 10-year bonds (coupon 2.25%) and $1.5bn through five-year at a coupon of 1.375%.
“The outcome of this offering is a strong testament to QP’s disciplined approach as an investor and formidable standing not only as the world’s largest LNG producer, but also within the capital and financial markets,” said HE Saad bin Sherida al-Kaabi, Minister of State for Energy Affairs, and the president and chief executive of QP.
He said the NFE projects would solidify QP’s leading role in the LNG (liquefied natural gas) industry as well as in the energy transition.
QP plans to increase LNG production capacity in two stages through the NFE and the North Field South (NFS) projects, which will raise Qatar's LNG production capacity in 2027 by 64% to 126mn tonnes per annum.
When NFS is completed, it will raise Qatar's overall hydrocarbon production to about 6.7mn barrels of oil equivalent per day.
QP worked with a group of leading global financial institutions on this deal, including Citi and J P Morgan as global co-ordinators; Bank of America Securities, Citi, Deutsche Bank, Goldman Sachs International, HSBC, J P Morgan, MUFG and QNB Capital as active book-runners; and Credit Suisse, which acted as passive book-runner.
Global credit rating agency Moody's recently affirmed QP's 'Aa3' long term issuer rating as well as 'aa3' baseline credit assessment. It also assigned 'Aa3' ratings to QP's contemplated senior unsecured bond issuances. The outlook on all ratings is "stable".
Another international rating agency Fitch had assigned QP a first-time long-term issuer default rating (IDR) of 'AA-' with "stable" outlook. It also assigned QP's proposed notes an expected senior unsecured rating of 'AA-(EXP)', in line with the company's long-term IDR.
Strong interest and favorable market conditions together with its outstanding credit ratings helped the country's hydrocarbon behemoth mark a "significant" achievement for an oil and gas company in the global financial and capital markets.
The proceeds from the offering would be used to support QP’s ambitious growth plans, particularly the North Field Expansion (NFE) projects over the coming few years.
The RegS/144A bond offering (sales to investors outside the US in offshore transactions) consists of 5, 10 and 20-year conventional tranches, and a dual-listed 30-year Formosa tranche. It saw the largest corporate Formosa tranche raised globally.
The hydrocarbons behemoth has raised $4bn through a 30-year (coupon 3.3%), $3.5bn each through 20-year (coupon 3.125%), $3.5bn through 10-year bonds (coupon 2.25%) and $1.5bn through five-year at a coupon of 1.375%.
“The outcome of this offering is a strong testament to QP’s disciplined approach as an investor and formidable standing not only as the world’s largest LNG producer, but also within the capital and financial markets,” said HE Saad bin Sherida al-Kaabi, Minister of State for Energy Affairs, and the president and chief executive of QP.
He said the NFE projects would solidify QP’s leading role in the LNG (liquefied natural gas) industry as well as in the energy transition.
QP plans to increase LNG production capacity in two stages through the NFE and the North Field South (NFS) projects, which will raise Qatar's LNG production capacity in 2027 by 64% to 126mn tonnes per annum.
When NFS is completed, it will raise Qatar's overall hydrocarbon production to about 6.7mn barrels of oil equivalent per day.
QP worked with a group of leading global financial institutions on this deal, including Citi and J P Morgan as global co-ordinators; Bank of America Securities, Citi, Deutsche Bank, Goldman Sachs International, HSBC, J P Morgan, MUFG and QNB Capital as active book-runners; and Credit Suisse, which acted as passive book-runner.
Global credit rating agency Moody's recently affirmed QP's 'Aa3' long term issuer rating as well as 'aa3' baseline credit assessment. It also assigned 'Aa3' ratings to QP's contemplated senior unsecured bond issuances. The outlook on all ratings is "stable".
Another international rating agency Fitch had assigned QP a first-time long-term issuer default rating (IDR) of 'AA-' with "stable" outlook. It also assigned QP's proposed notes an expected senior unsecured rating of 'AA-(EXP)', in line with the company's long-term IDR.