Banks submitting proposals are understood to include Credit Suisse First Boston, Goldman Sachs, HSBC, Lehman Brothersand Morgan Stanley. The bond is likely to be used to refinance the $1,200 million NGL-4 borrowing, taken out in 1999 and 2000, in addition to some smaller QP financings. About $700 million of the NGL-4 financing remains to be paid off.

'A bond issue would be a good way to diversify funding sources given the loaded project pipeline in Qatar, and fixed-income instruments are particularly well suited to refinancings,' says one international banker. 'However, since the sponsor on NGL-4 is QP, refinancing through the bank market could also be attractive.' The NGL-4 project covered the construction of a fourth natural gas liquids (NGL) plant at Mesaieed, primarily to feed the Qatar Chemical Company (Q-Chem) complex.

The original financing consisted of three tranches, two $400 million commercial portions and an insurance wrap of the same size.

QP has been a pioneer of innovative funding solutions. In August, two bonds were launched, worth a total of $2,250 million, to part finance the RasGas III project, a 70:30 joint venture of QP and the US' ExxonMobil Corporation(MEED 12:8:05).