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Mon 17 Oct 2016 01:58 PM

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Qatar offers $825m gov't bond sale, third of 2016

Falling state revenues due to low oil and gas prices have slashed financial inflows into the banking system this year

Qatar offers $825m gov't bond sale, third of 2016

Qatar's central bank is offering 3 billion riyals ($825 million) of government bonds in its third domestic bond sale this year, according to a circular seen by Reuters.

Bids for the latest offer were due on Monday, with allocations to be made the following day, according to the offer document.

The offer is made up of 1.5 billion riyals of three-year bonds at a fixed rate of 2.25 percent, 1 billion riyals of five-year debt at 2.75 percent, 250 million riyals of seven-year debt at 3.25 percent and 250 million riyals of 10-year debt at 3.75 percent.

The offer and rates are the same as the previous domestic bond issue, which took place in September.

A central bank official told Reuters the results of the bond auction would be announced on Tuesday and declined to comment on its size.

Falling state revenues due to low oil and gas prices have slashed financial inflows into the banking system this year, raising money rates and causing the central bank to cancel several monthly sales of short-term bills.

Since June, however, money rates have come off their highs, with the three-month interbank offered rate quoted at 1.62 percent on Monday, down from June's multi-year peak of 1.77 percent though still up sharply from 1.19 percent 12 months ago.