Qatar plans to issue $1.1bn gov't bonds next week

Central bank says the debt will be auctioned on Sunday; follows previous bond sale in April

A general shot of Qatar's Central Bank. (Photo for illustrative purposes only)

A general shot of Qatar's Central Bank. (Photo for illustrative purposes only)

Qatar's central bank plans to issue QR4 billion ($1.1 billion) worth of local currency government bonds next week, it said on Tuesday, including a new seven-year tranche to build a longer yield curve.

The debt, to be auctioned on Sunday, will include 2.1 billion riyals worth of three-year conventional bonds and 950 million riyals each of five- and seven-year tranches, the central bank said on its website.

Qatar launched quarterly government bond sales in March 2013 to expand the central bank's policy arsenal and help banks manage liquidity. Since then, it has usually issued 3 billion riyals worth of conventional bonds and 1 billion riyals of sukuk each quarter; maturities have been three and five years.

Qatari officials have said they want to develop a deeper and more active local riyal-denominated bond market; lengthening the curve with a seven-year tranche is part of this process.

In the previous bond sale in April, the central bank issued 4 billion riyals of solely Islamic bonds; this month's auction will only involve conventional bonds.

The central bank has also been offering a fixed amount of 4 billion riyals worth of Treasury bills in regular monthly sales.

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