The country's largest insurer plans a bond issue to boost capital reserves, sources say
Qatar Insurance Co.
(QIC) plans a bond issue to boost its capital reserves, sources
familiar with the matter told Reuters on Thursday.
It would be the first perpetual bond to be issued by the
insurance sector in the Gulf.
Qatar's largest insurer by market value has chosen HSBC
and BNP Paribas to arrange a series of
meetings with fixed income investors.
The offering is expected to be of benchmark size, which is
traditionally understood to mean upwards of $500 million, said
one of the sources.
The sources did not say when the meetings would take place,
but said they are unlikely to be imminent given volatility in
emerging market bonds in the wake of Donald Trump's election
victory in the United States last week.
A spokesman for QIC declined to comment.
Qatar Insurance has already raised its capital this year
through a 20 percent rights issue worth 2.03 billion riyals
($558 million), which ran from April 10 to May 1.
Group Chief Executive Khalifa al-Subaey was quoted by local
media in February as saying the additional capital from the
rights issue would be used to support growth plans, including
expansion in Southeast Asia.
As of the end of September, QIC's total assets amounted to
about $7 billion, according to its latest financial results.