Qatar Wealth Fund Said to Seek $7.6 Billion Loan Backed by Stock - Bloomberg:
Qatar’s sovereign fund is borrowing around 7 billion euros ($7.6 billion) against its stock holdings, as the top liquefied natural gas exporter seeks to bolster its cash reserves at a time of plunging energy prices, people with knowledge of the matter said.
The Qatar Investment Authority is in discussions with banks including JPMorgan Chase & Co. and UBS Group AG for a margin loan backed by some of its European equity investments, according to the people, who asked not to be identified because the information is private. The deal could rank as one of the biggest-ever margin loans in the region.
The fund manages about $295 billion of assets and ranks as the eleventh largest globally, according to the Sovereign Wealth Fund Institute. It has holdings in some of Europe’s biggest companies including London Stock Exchange Group Plc, Volkswagen AG and Glencore Plc, data compiled by Bloomberg show.
Qatar, one of the world’s richest nations per-capita income, raised $10 billion in an April bond sale that attracted around $45 billion of orders. The Gulf monarchy has been impacted by plunging oil prices because most gas prices are closely tied to the cost of crude, which dropped more than 50% in March.
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A boat moored in front of the skyline of Doha, Qatar.
Photographer: GIUSEPPE CACACE/AFP via Getty Images |
Qatar’s sovereign fund is borrowing around 7 billion euros ($7.6 billion) against its stock holdings, as the top liquefied natural gas exporter seeks to bolster its cash reserves at a time of plunging energy prices, people with knowledge of the matter said.
The Qatar Investment Authority is in discussions with banks including JPMorgan Chase & Co. and UBS Group AG for a margin loan backed by some of its European equity investments, according to the people, who asked not to be identified because the information is private. The deal could rank as one of the biggest-ever margin loans in the region.
The fund manages about $295 billion of assets and ranks as the eleventh largest globally, according to the Sovereign Wealth Fund Institute. It has holdings in some of Europe’s biggest companies including London Stock Exchange Group Plc, Volkswagen AG and Glencore Plc, data compiled by Bloomberg show.
Qatar, one of the world’s richest nations per-capita income, raised $10 billion in an April bond sale that attracted around $45 billion of orders. The Gulf monarchy has been impacted by plunging oil prices because most gas prices are closely tied to the cost of crude, which dropped more than 50% in March.
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