Qatar National Bank (QNB) is planning to raise $1.5bn to refinance a $1.85bn loan that matures in late July, according to sources close to the deal.

Potential lenders on the deal have been asked to respond with commitments by 11 July and QNB aims to sign the loan on 23 July. The loan is one of the largest corporate deals in the region so far this year and will have a tenor of three years.

Five banks have been appointed to underwrite and arrange the deal, the UK’s HSBC and Standard Chartered, the US’ JP Morgan, Germany’s Deutsche Bank, and Japan’s Bank of Tokyo Mitsubishi.

Pricing starts at 100 basis points above the London-interbank offered rate, which is expected to force many banks out of participating in the loan. The highest pricing on offer in 120 basis points above Libor, including loan pricing and fees paid to the banks for doing the deal. “This deal is very much one for international banks who want to do business in Qatar,” says one source at a regional bank. “Pricing is too thin for most regional banks to join the group, especially in dollars.”

The five arranging banks have each put $300m into the deal, which will be scaled back depending on how successful syndication of the deal is.

The existing $1.85bn loan matures on 22 July. QNB also raised a $1bn bond issue in February.