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Wed 12 May 2010 12:41 PM

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Qatari Diar said to plan gov't-backed global bond issue

Developer may offer 10-year conventional bonds and 5- year Islamic securities.

Qatari Diar said to plan gov't-backed global bond issue
QATARI DIAR: \n

Qatari Diar formed a joint venture with Deutsche Bahn AG to build the Gulf country’s rail and metro system that will cost close to $37bn.(Getty Images)

Qatari Diar Real Estate Investment Co may raise about $1.5 billion by selling global bonds backed by Qatar, the world’s biggest exporter of liquefied natural gas, a person familiar with the sale plan said. The developer may offer 10-year conventional bonds and 5- year Islamic securities, said the person who declined to be identified as details of the transaction haven’t been finalized. HSBC Holdings Plc and Barclays Capital are among banks expected to manage the sale, which could be completed during the next three months, according to the person.

Qatari Diar, chaired by Qatar Prime Minister Sheikh Hamad Bin Jasim Bin Jaber Al-Thani and a unit of the country’s sovereign wealth fund, has invested $60 billion in projects in more than 18 countries. The company owns a stake in a project to build the Shard in London, which will be Western Europe’s largest skyscraper. Qatari Diar has about $3.96 billion in loans maturing in 2011, Bloomberg data showed.

Qatari Diar didn’t immediately respond to questions on the bond issue when reached through an outside media manager working for the company. Spokesmen for HSBC and Barclays declined to comment, when contacted by Bloomberg News.

Qatar in November raised $7 billion in a three-part bond sale that generated $28-billion worth of orders. The Persian Gulf emirate is spending billions of dollars diversifying its economy with acquisitions of stakes such as German carmaker Volkswagen AG.

Qatari Diar formed a joint venture with Deutsche Bahn AG to build the Gulf country’s rail and metro system that will cost close to $37 billion, the Qatar News Agency reported in February.

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