Qatar Leads The Region With Lowest Bond, Sukuk Issuance Yield In 2025
Doha: Qatar leads the region with the lowest bond and sukuk issuance yield in this year. The country has achieved the lowest yield paid by any bond or sukuk issuer across Central and Eastern Europe, the Middle East and Africa in 2025, Ministry of Finance stated in a post on its X platform, yesterday.
Revealing the details it noted that the issuance attracted overwhelming demand with the total orders reaching $13.5bn – more than 3.4 times the issue size.
The stable and buoyant Qatar economy has been growing at a fast pace with strong global investor confidence. Leading global businesses choosing Qatar as their business hub exemplify the achievement of the country in enhancing its position as a key business destination in the region.
Recent initiatives, mega projects and exciting events showcase how the country is growing in terms of both socially and economically.
Qatar has been focused on enhancing the appeal of its investment environment. To this end, it has established necessary legal and regulatory frameworks to create a secure environment for both local and foreign investments.
Regarding the issuance the post stated that it included three year bonds worth $1bn with a 3.625 percent coupon and ten year sukuk worth $3bn with a 4.25 percent coupon.
It also highlighted the Qatar's high credit ratings as the country maintains strong sovereign ratings of Aa2/AA/AA from Moody's, S&P, and Fitch all with a stable outlook.
Recently, Qatar International Islamic Bank (QIIB), rated 'A2' by Moody's with a stable outlook and 'A' by Fitch Ratings with a stable outlook, announced the successful issuance of a $500m senior unsecured Sukuk with a five-year maturity, issued under Regulation S as part of the Bank's existing US$2bn Trust Certificate Issuance Programme.
The transaction attracted strong demand from regional and international investors, with total orders exceeding $2bn-more than four times the issue size.
This remarkable demand underscores investor confidence in QIIB and reflects the continued strength and resilience of Qatar's economy, which continues to offer attractive investment opportunities across diverse sectors.
Also, Moody's Ratings recently, assigned '(P)Aa2' rating and stable outlook to Qatar's Global Sukuk Ventures' issuance programme.
Moody's assigned foreign-currency backed senior unsecured MTN rating of (P)Aa2 to the trust certificate issuance program of Global Sukuk Ventures, a special purpose vehicle (SPV) incorporated in Qatar and wholly owned by the government of Qatar.
The trust certificates issued by the SPV will constitute direct, unconditional and unsubordinated obligations of the government of Qatar.
The rating mirrors the government of Qatar's Aa2 long-term issuer rating and stable outlook. Qatar's Aa2 ratings are supported by its vast hydrocarbon reserves, exceptionally high per-capita income and the government's very strong balance sheet.
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