Qatar's corporate bonds have been receiving overwhelming response from the international investors, particularly in view of the intrinsic strength of the domestic economy.
"The recent past issues have seen oversubscription in the order book, which proves to the point that these entities derive strength from a robust local economy, amidst the challenges of the Covid-19 pandemic," a market source told Gulf Times.
Going by the trends of the corporate earnings (in the second quarter) and the revival in the non-hydrocarbon private sector, he said the corporate sector has been able to leverage on the underlying macro fundamentals of the (Qatari) economy.
Qatar’s robust fiscal buffers and reform programmes have been viewed as positive by the global investors.
Highlighting that Qatar's economy has weathered the pandemic and the plunge in oil prices relatively well; the US-based Institute of International Finance said it expects modest economic recovery in 2021 driven by strengthening oil and gas prices and a revival in domestic demand.
“It (the oversubscription) reflects the general consensus that Doha is fast becoming an investment destination,” the source said.
The soft rate regime in the US and Europe has also come in the aid of the corporate while coming out with the debt instruments, he said.
Commercial Bank yesterday said its $200mn-250mn syndicated loan, aimed at Asian investors, was oversubscribed and thereby it chose to retain up to $450mn in facility amount.
The $12.5bn bonds of the Qatar Petroleum, the country’s hydrocarbon bellwether, were oversubscribed more than three times.
The Qatar Financial Centre (QFC), in its latest Capital Market Report, had said the strong global investor demand for Qatari debt, coupled with near-zero interest rates, against a backdrop of accommodative bond markets present Qatari corporates with an opportunity to raise cheap dollar-denominated debt to fund M&A (mergers and acquisitions) transactions as part of the anticipated consolidation wave across certain industries.
Early this year, QNB Group, the largest financial institution in the Middle East and Africa, received robust response for its $1bn fixed-rate bond issue.
“The Reg S issue attracted strong interest from investors globally and was arranged by Credit Agricole CIB, HSBC, Mizuho, QNB Capital and Standard Chartered Bank (together joint lead managers),” QNB had said.
In 2020, Ahlibank Qatar's five-year bond, which carried a coupon rate of 1.875%, was significantly oversubscribed by more than three times with orders from more than 122 investors in Europe, Asia, UK and Middle East and North Africa.
QNB had last year came out with its first green benchmark bond issuance and first ever green bond issued by a Qatari bank; it was also oversubscribed.
"The recent past issues have seen oversubscription in the order book, which proves to the point that these entities derive strength from a robust local economy, amidst the challenges of the Covid-19 pandemic," a market source told Gulf Times.
Going by the trends of the corporate earnings (in the second quarter) and the revival in the non-hydrocarbon private sector, he said the corporate sector has been able to leverage on the underlying macro fundamentals of the (Qatari) economy.
Qatar’s robust fiscal buffers and reform programmes have been viewed as positive by the global investors.
Highlighting that Qatar's economy has weathered the pandemic and the plunge in oil prices relatively well; the US-based Institute of International Finance said it expects modest economic recovery in 2021 driven by strengthening oil and gas prices and a revival in domestic demand.
“It (the oversubscription) reflects the general consensus that Doha is fast becoming an investment destination,” the source said.
The soft rate regime in the US and Europe has also come in the aid of the corporate while coming out with the debt instruments, he said.
Commercial Bank yesterday said its $200mn-250mn syndicated loan, aimed at Asian investors, was oversubscribed and thereby it chose to retain up to $450mn in facility amount.
The $12.5bn bonds of the Qatar Petroleum, the country’s hydrocarbon bellwether, were oversubscribed more than three times.
The Qatar Financial Centre (QFC), in its latest Capital Market Report, had said the strong global investor demand for Qatari debt, coupled with near-zero interest rates, against a backdrop of accommodative bond markets present Qatari corporates with an opportunity to raise cheap dollar-denominated debt to fund M&A (mergers and acquisitions) transactions as part of the anticipated consolidation wave across certain industries.
Early this year, QNB Group, the largest financial institution in the Middle East and Africa, received robust response for its $1bn fixed-rate bond issue.
“The Reg S issue attracted strong interest from investors globally and was arranged by Credit Agricole CIB, HSBC, Mizuho, QNB Capital and Standard Chartered Bank (together joint lead managers),” QNB had said.
In 2020, Ahlibank Qatar's five-year bond, which carried a coupon rate of 1.875%, was significantly oversubscribed by more than three times with orders from more than 122 investors in Europe, Asia, UK and Middle East and North Africa.
QNB had last year came out with its first green benchmark bond issuance and first ever green bond issued by a Qatari bank; it was also oversubscribed.