Qatar Petroleum grabs $12.5 bln in emerging market bonds record
Qatar Petroleum (QP), one of the world's top liquefied natural gas (LNG) suppliers, sold $12.5 billion in a jumbo four-tranche bond deal on Wednesday, a document showed, its first public bond sale and the biggest issuance out of emerging markets this year.
QP sold $1.5 billion in a five-year portion at 50bps over U.S. Treasuries (UST), $3.5 billion in 10-year paper at 90 bps over UST, $3.5 billion in 20-year notes at 3.15% and $4 billion in 30-year Formosa bonds at 3.3%.
The bonds landed roughly 10-15 bps wider than the sovereign's curve, which investors likened to Saudi oil giant Aramco's debt compared with Saudi sovereign debt.
QP, which supplies one in five LNG cargoes globally, will use the proceeds for operational and investment purposes, including for its North Field expansion project, the bonds' prospectus said.
QP signed a contract in February for the first phase of its North Field LNG expansion project, which aims to boost Qatar's LNG output to 126 million tonnes per annum (mtpa) by 2027 from 77 mtpa currently.
July 5, 2021