Tuesday, 17 November 2009

Qatar Issues $7 billion – Didn’t see this coming

Qatar will be issuing $7 billion of bonds instead of the expected $5 billion

$3.5 billion in the 5year tranche @ T+185 bps (revised down further from this mornings revisions of +190)

$2.5 billion in the 10 year tranche @ T+195 bps (in line with this morning)

$1 billion in the 30 year tranche @ T+215 bps (in line with this morning)


Allocations out in the next 30-45 minutes

Participants in the grey market are scratching their heads wondering what's going on – very quiet

*** LAUNCHED *****

ISSUER : State of Qatar

RATINGS : Aa2 / AA- (Stable/Stable)

TOTAL SIZE : $7.0 Billion Total

SECURITY/FORMAT : Senior Fixed Rate, 144a/Reg S (No Reg Rights)

TRANCHE SIZE : $3.5 Billion $2.5 Billion $1.0 Billion

MATURITY : Jan 20, 2015 Jan 20, 2020 Jan 20, 2040

LAUNCH : T+185bp T+195bp T+215bp

BOOKRUNNERS : BARCLAYS/CS/GS/JPM/QNB (*BARC B&D*)

MINIMUM DENOMS : $100,000 by $1,000

MAKE-WHOLE CALL : T + [50]bp

SETTLE/1st Pay : November 24, 2009 (T+5) / January 20, 2010

4 comments:

obeid said...

Is the investible minimum 100,000 and anything above that must be in 1,000 dollar increments?
Trying to understand the minimum denoms here.
Thanks

Saad Mahmood said...

Yes, Obeid. The minimum is $100,000 and then in increments of $1000. So you could place an order for $100,000 or $207,000, as an example.

Thanks again for your comments - feel free to email my directly if you have any other questions. Saad

obeid said...

Thanks for the prompt response.
Quick question? How did the Q Sovereigns behave in the 2ndary market when rumors of an attempted coup came out a few months ago? Did yields shoot up 400-500 bp temporarily, or where there simply no Sovereign issues at the time?

Anonymous said...

Qatar has bonds that were issued earlier than those that came out last night. I dont remember the exact dates of the reported attempts of a coup, but I believe it was somewhere between the end of July and Mid August. If I look at the charts for the 5 year bond and the 10 year bond during that defined period, I see that there was definitely a dip.

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