Qatar to sell $6.6 billion in bonds, sukuk
Dubai, January 13, 2014
Qatar's central bank plans to issue on Thursday conventional and Islamic government bonds worth a combined 24 billion riyals ($6.6 billion), it said on Monday, a much larger amount than it has offered in past quarterly debt auctions.
This week's local currency debt will be sold in three- and five-year tranches. The conventional bonds will be worth 13 billion riyals, while the rest of the issuance will be in the form of sukuk, the central bank said on its website.
The large issue is designed to replace part of an even bigger issue of 50 billion riyals worth of three-year government bonds that were issued in January 2011, as part of the central bank's efforts to manage loose money market liquidity.
Last March, the central bank launched quarterly bond sales worth a total of 4 billion riyals, allocated directly to banks.
It has also conducted monthly auctions of 91-, 182- and 273-day T-bills since 2011, consistently draining 4 billion riyals despite occasional build-ups of excess liquidity as well as a recent fall in demand for the bills linked to geopolitical tensions over the civil war in Syria.
Qatar's new finance minister Ali Sherif al-Emadi told Reuters in December that volumes drained from the market through local currency debt issues might be changed flexibly in coming months.
The world's top liquefied natural gas exporter may need more active management of money market liquidity in coming years as it plans to spend some $140 billion on infrastructure building, partly in preparation to host the 2022 World Cup soccer tournament.
The International Monetary Fund has said Qatar's central bank needs to start managing liquidity fluctuations more finely through more flexible open market operations. – Reuters
More Finance & Capital Market Stories
- KFH-Bahrain rebrands priority banking
- Bank Nizwa wins top Islamic bank award
- Qatar labour costs may jump: IMF
- Kuwait Q3 trade surplus hits $23bn
- Dubai trade growth up 7.6pc to $362bn
- Deloitte appoints new managing director
- Al Ramz tops UAE trading in Feb
- IFC in $150m loan deal with Bank Audi
- SME funding focus for Abu Dhabi forum
- Insurance House posts second year of profit
- ETF global assets hit record $2.44 trillion
- Bahrain firms plan IPOs
- Serbia wins $1bn Abu Dhabi loan
- Key equity banker resigns from Saudi Fransi
- DMCC to boost Islamic commodity trade with tie-ups
- IDB, KIA units to invest in Morocco
- First Gulf to set up $1bn sukuk in Malaysia
- Singapore’s UOB Bullion and Futures joins DGCX
- Infrastructure investment ‘key to growth’
- BKIC declares 30pc dividend
- StanChart profit falls 16pc in 2013
- Veteran Saudi banker to head AMF
- Dubai World prepays $284m to creditors
- EFG-Hermes sells Damas stake to Mannai
- Ultra rich number to grow 35pc in Mideast
- Saudi IPO market 'set for big year'
- RAK 'exploring' ceramics unit stake sale
- Bahrain Bourse wins key UK award
- Alba backs Euromoney forum
- URC bond rating upgraded to stable outlook