Wednesday 12 December 2012

Strong demand may prompt Qatar Telecom to rethink $1 billion bond cap

Strong global demand for Qatar Telecom’s imminent 10-year bond offering could prompt the company to reconsider its decision to cap the issue at $1 billion, especially if interest from the United States is robust.

Investors are expected to pile into the issue, viewing it as virtually a sovereign issue priced at a small premium to Qatar government bonds and as a rare chance to invest in a corporate bond in the cash-rich state, the world's top liquefied natural gas exporter.

After price guidance was set on Wednesday, the issue from the majority state-owned telecoms operator was bid up +0.375 in grey trading, an indication of strong appetite for the paper, which is backed by Qatar Telecom’s (Qtel) solid A credit rating from Standard & Poor’s.

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