Qatar has once again flexed its financial muscle in global debt markets, locking in remarkably tight pricing on a $4 billion dual-tranche bond that underscored investors’ growing confidence in the Gulf nation’s credit strength.
The sovereign’s latest foray features a $1 billion, three-year senior unsecured bond alongside a $3 billion, ten-year sukuk—both greeted with overwhelming demand from global investors.
The three-year conventional bond priced with a coupon of 3.625%, reoffered at just 15 basis points over U.S. Treasuries for a yield of 3.759%, after initial guidance of 45 bps. The sukuk, meanwhile, came in at a profit rate of 4.25%, with spreads narrowing from T+55 bps at the start to just T+20 bps—yielding 4.308%.
At its peak, the order book surged to $13.5 billion before closing around $11.25 billion, a testament to Qatar’s ability to attract capital even amid shifting global rate cycles. The shorter bond drew about $2.5 billion in bids, while the sukuk portion commanded nearly $8.75 billion.
This marks Qatar’s second successful dual-tranche issue of the year—its previous $3 billion offering in February also priced aggressively. The emirate’s disciplined issuance strategy mirrors the confidence seen across the Gulf’s top sovereign borrowers, following Abu Dhabi’s record-tight spreads in September, where it priced its own bonds at just 10–18 basis points above U.S. Treasuries.
For global investors seeking stability and yield, Qatar’s paper continues to deliver both—with a precision that’s becoming something of a trademark.
