Industries Qatar to delay bonds
Dubai, September 24, 2007
Industries Qatar is likely to postpone the sale of bonds to help finance a chemical plant in view of the global credit crisis, an official said.
Qatar Fertiliser (Qafco), a unit of Industries Qatar, is looking to borrow $1.2 billion to finance construction of a plant making urea and ammonia, according to London-based Middle East Economic Digest.
Qafco had planned to sell bonds in October as part of a borrowing programme. "The bond is likely to be postponed until the market is settled," said Houssam Kharboutli, project finance director at state-owned Qatar Petroleum (QP). QP controls Industries Qatar.
"Given the bond market today, do you think it would be wise to do a bond," he asked.
Qafco still plans to raise funds next month through bank loans, said Kharboutli, declining to specify the company's borrowing needs.
The plant, which will produce urea and ammonia, will be complete in 2010.