Qatari Diar appoints banks for bond issue

08 July 2010

Proceeds to be used for local real estate schemes

Qatari Diar, the state-owned real estate investment fund, has appointed the UK’s Barclay’s Capital, HSBC, Standard Chartered and Royal Bank of Scotland, with Qatar National Bank to lead a bond issue for the firm.

The deal carries a sovereign guarantee and according to rating agency Standard & Poor’s (S&P), the majority of the proceeds will be used to finance local projects by Qatari Diar subsidiary Barwa.

The company is planning to sell two tranches of debt, one with a five-year tenor and the other with a 10-year tenor. A roadshow for international investors is expected to take place in mid-July. The size of the bond will depend on market appetite, but sources in Qatar indicate the company could be seeking more than $3bn.

S&P has rated the deal as AA, the same rating as the state of Qatar.

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