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Home Finance Qatar attracts $10.9 billion in green bonds

Qatar attracts $10.9 billion in green bonds

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Qatar issued Green bonds In two tranches with a total value of $2.5 billion, it attracted orders worth $10.9 billion, as reported by the “IFR” fixed income news service.

The two tranches were distributed as follows:

  • Five-year bonds worth $1 billion at a yield of 30 basis points above US Treasuries,
  • Ten-year bonds worth $1.5 billion yield 40 basis points above US bonds.

Qatar reduced the initial indicative rate of 70 basis points over US Treasury bonds for five-year bonds, and 80 basis points over US Treasury bonds for ten-year bonds, after receiving total orders exceeding $10.9 billion.

The operation is considered Qatar’s first external debt issuance in four years. The proceeds of the issuance, led by the Qatari Ministry of Finance, are scheduled to contribute to financing eligible green projects.

“We are not thirsty for money,” Qatari Finance Minister Ali Al Kuwari said last January, referring to the issuance process. This is just to clarify the situation…the market is hungry for a release. “Many investors have contacted us.”

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In a report in December, global accounting firm KPMG encouraged Qatar to issue green bonds and adopt sustainable financing mechanisms, saying that this step would help the Gulf state achieve its sustainability goals.

Qatar chose Credit Agricole and HSBC to assume the role of coordinators for the green structuring, in addition to the role of global coordinators in partnership with JP Morgan and Qatar National Bank Capital.

Barclays, Citigroup, Deutsche Bank, Goldman Sachs International, SMBC Nikko Capital Markets and Standard Chartered acted as lead managers.

 

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