The Ministry of Finance has announced the issuance of green bonds totaling USD 2.5 billion, marking a first in the region to fund environmentally friendly projects.
The bonds are divided into two portions: a USD 1 billion tranche with a five-year maturity priced at a 30 basis point premium over US Treasuries, and a USD 1.5 billion tranche with a 10-year maturity priced at a 40 basis point premium over US Treasuries.
Qatar secured the lowest spread ever recorded by any bond-issuing country in the Middle East, Central and Eastern Europe, and Africa.
The Ministry of Finance reported that the coverage ratio surpassed 5.6 times the total issuance size, with peak subscription demand exceeding USD 14 billion. This indicates broad and diverse geographic and institutional investor interest from around the world.
The success of the subscription process reflects investors’ high confidence in the sovereign green financing framework established by the Ministry of Finance, adhering to the highest global standards in sustainable finance. It also offers investors a chance to support the country’s efforts in combating climate change and protecting the environment through sustainable development, alongside developing the sustainable finance sector in the country.
Credit Agricole and HSBC were chosen to coordinate the structuring of the sovereign green financing framework and will serve as global coordinators alongside JP Morgan and QNB Capital, who are the primary issuance managers. Additionally, they will act as joint bookrunners with Barclays, Citigroup, Deutsche Bank, Goldman Sachs, SMBC Nikko, and Standard Chartered Bank.
Qatar has notably elevated its sovereign credit ratings to elite levels. Fitch Ratings upgraded Qatar’s rating from AA- to AA with a stable outlook, the third-highest sovereign credit rating globally. Moody’s also upgraded Qatar’s rating to AA2 and changed its outlook to stable.
