Qtel's debut bond sale oversubscribed eight times

$1.5bn bond sale attracts bids exceeding $13bn, scheme will help refinance existing debt.  
Qtel's debut bond sale oversubscribed eight times
By Dania Saadi
Wed 03 Jun 2009 01:35 PM

State-controlled Qatar Telecommunications Co (Qtel) said on Wednesday its $1.5bn debut bond sale was more than eight times oversubscribed, as bids exceeded $13bn.

"Following considerable interest from investors globally the issue was significantly oversubscribed and we have been able to issue the notes at attractive pricing levels," Qtel Chairman Abdullah Bin Saud Al-Thani, said in a company statement.

Qtel's bond sale, part of a $5bn global medium term note programme to partly be used to refinance existing debt, follows the government's $3bn benchmark bond launched in early April.

State and corporate issuers in the energy-exporting Gulf region have raised more than $7 billion by issuing bonds over the last three months and are eyeing further sales as demand rises for high-rate emerging market debt.

Qtel, via its Qtel International Finance Ltd arm, sold $900m in five-year notes at a yield spread of 415 basis points over comparable US treasuries and a $600m in 10-year notes at a yield spread of 435 basis points over Treasuries.

Barclays, BNP Paribas, Deutsche Bank, JPMorgan and RBS were lead managers on the deal.

Qatari state-affiliated firms are eyeing between $3bn and $4bn in bond sales this year to refinance debt and finance new projects as spreads narrow, Abdul-Rahman Al-Shaibi, a member of Qatar's State Finance Policy Committee told Reuters on Sunday.

Qtel said last week that of two loan facilities totalling $5bn, one would mature in the fourth quarter of 2009 and the other in the third quarter of 2012. (Reuters)

For all the latest tech news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.

Subscribe to our Newsletter

Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.