Qatar set to sell bonds, sukuk worth $1.1bn

Country's central bank said to offer mix of bonds and Shariah-compliant notes
Qatar set to sell bonds, sukuk worth $1.1bn
Currency from the Gulf state of Qatar, a Qatari Riyal sits with a U.S. dollar displayed for a photograph in Dubai, United Arab Emirates, on Wednesday, Nov. 21, 2007. Gulf Arab states may fail to keep consumer prices in check by revaluing their currencies against the dollar, according to strategists at HSBC Holdings Plc and Citigroup Inc. Photographer: Charles Crowell/Bloomberg News
By Reuters
Fri 08 Mar 2013 10:26 AM

Qatar will sell QR4bn ($1.1bn) of three-year and five-year bonds and sukuk, its state news agency has said.

The Gulf state's central bank will offer local banks QR3bn worth of bonds and QR1bn worth of Shariah-compliant notes, Qatar News Agency (QNA) said.

The local currency issues will take place quarterly, it said, without specifying how much of each maturity would be sold.

In January the International Monetary Fund's mission chief for Qatar told Reuters that the objective behind an issuance would be to build a domestic sovereign yield curve. Qatar's central bank was not available for comment.

Qatar has issued local currency bonds before. In January 2011, the central bank issued a QR50bn ($14bn), three-year bond directly to local banks as a step to drain excess money from the banking system.

In recent months, Qatar-related debt denominated in dollars has drawn strong demand from international investors; majority state-owned Qatar Telecom saw heavy bids for a $1bn bond sale in January.

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