Qatari companies are taking advantage of declining borrowing costs as the Persian Gulf country with stakes in J Sainsbury Plc. and Volkswagen AG seeks to raise funds for expansion.
Qatar Telecom QSC hired banks last week to set up meetings with investors after the Chief Executive Officer Nasser Marafih said in May it may buy stakes in foreign operators. Qatar Islamic Bank SAQ Sept. 30 raised $750 million from the sale of five-year Islamic bonds after receiving orders for $6 billion. Demand was higher than for Dubai’s sovereign issue. Qatar Aviation Lease Co. asked lenders to halve the interest margin on a $650 million loan, a person familiar with the transaction said Sept. 23.
“The main driver really is the fact that the interest rate cycles are low,” said Kapil Chadda, Dubai-based managing director of financial institutions at HSBC Holdings Plc. “These guys are poised for continued growth, although it may be muted at this time. They feel it’s a good time to go to the market.”
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