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Wed 11 Jul 2012 10:09 AM

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Qatar to issue $4bn sukuk Wednesday

Will be the Gulf state’s first international sukuk in nearly a decade

Qatar to issue $4bn sukuk Wednesday

Qatar will sell $4 billion in a two-part Islamic bond sale with pricing due on Wednesday, arranging banks said, after initial price indications were tightened due to massive demand.

The deal, Qatar's first international sukuk in nearly a decade, has already attracted orders of about $22 billion, allowing the borrower to tap markets for the maximum $4 billion available.

Profit talk for the long five-year portion was revised to 120 to 125 basis points over midswaps, from 135 basis points released earlier in the day.

A size for the two tranches is still to be determined.

For the long 10-year portion, guidance was tightened to 160 - 165 bps over midswaps, from 175 bps indicated initially.

Books in Europe are due to close on Tuesday while Asia and Middle East books will close on Wednesday morning. The sukuk will price on Wednesday.