Qatar sells QAR4.6bn in bonds, sukuk - Gulf Business
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Qatar sells QAR4.6bn in bonds, sukuk

Qatar sells QAR4.6bn in bonds, sukuk

An official said most banks participated in the offer

Qatar’s central bank sold QAR4.6bn ($1.26bn) of conventional and Islamic government bonds on Tuesday in its first domestic government bond offer this year, a central bank official told Reuters on Wednesday.

The central bank sold a total of QAR3bn of conventional bonds, including QAR1.5bn of three-year bonds at a fixed rate of 2.25 per cent, QAR1bn of five-year debt at 2.75 per cent, QAR250m of seven-year debt at 3.25 per cent and QAR250m of 10-year debt at 3.75 per cent. In addition, it sold QAR1.6bn of sukuk.

“The demand was fine and most banks participated,” said the official, who added that bids by banks for conventional bonds had exceeded the amount offered by QAR50m, and for sukuk by QAR2.4bn.

“It is a good sign and shows liquidity in the system is okay,” he said, adding that another issue was possible next month. He did not elaborate.

Reduced state revenues due to low natural gas prices cut flows of new petrodollars into Qatar’s banking system this year, pushing money rates up sharply and causing the central bank to cancel several monthly sales of short-term bills.

Since June, however, money rates have come off their highs and liquidity has improved somewhat along with a rise in government deposits at commercial banks.


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