DOHA: The State of Qatar achieved the lowest yield by an issuer in CEEMEA region in 2025, moreover the transaction represents the lowest yield paid by EM sovereign in 2025 in its successful completion of a dual-tranche USD-denominated issuance comprising a three year conventional bond and a ten year Islamic Sukuk, totalling $4bn. This is a reflection of the deep trust international investors place in the country’s financial stability, strong financial position and its solid medium-term economic growth outlook.
The issuance attracted robust demand from existing and new investors and underpinned the State’s global appeal as one of the highest rated sovereigns in the Emerging Markets.
The transaction included a $1bn tranche maturing in 3 years with a coupon rate of 3.625 percent and a $3bn Sukuk tranche maturing in 10 years with a coupon rate of 4.25 percent.
The rates represent a 15 basis points spread over 3-year US Treasuries, and a 20 basis points spread over 10-year US Treasuries, having started with an Initial Price Target (IPT) of 45 basis points for the 3-year tranche and 55 basis points for the 10-year tranche.
Strong investor appetite resulted in the orderbooks reaching a peak at $13.5bn which allowed price tightening of 30 bps and 35 bps from IPTs on the 3-year and 10-year tranches respectively. The issuance was 3.4 times oversubscribed at the peak of demand, having attracted a diversified investor base across Asia, Europe, Middle East and Africa and the United States.
Rating agencies Moody’s, Standard & Poor’s and Fitch have assigned a credit rating of Aa2, AA and AA respectively to the State with Stable Outlook.
The three year bond issuance was managed by the global coordinators and joint bookrunners, Deutsche Bank, Goldman Sachs International, QNB Capital, Standard Chartered Bank along with joint lead managers including Santander, Citi, Deutsche Bank, Emirates NBD Capital, Goldman Sachs International, ICBC, IMI-Intesa Sanpaolo, QNB Capital, Standard Chartered Bank and SMBC.
The ten year Sukuk issuance was managed by the global coordinators and joint bookrunners, Citi, Deutsche Bank, QNB Capital and Standard Chartered Bank along with joint lead managers including Al Rayan Investment, Citi, Deutsche Bank, Dubai Islamic Bank, Emirates NBD Capital, Goldman Sachs International, Islamic Corporation for the Development of Private Sector, IMI-Intesa Sanpaolo, KFH Capital, QNB Capital and Standard Chartered Bank. Deutsche Bank and Standard Chartered Bank acted as Sukuk Structuring Banks on this issuance.
