QP raises $12.5bn in bond sale

Qatar Petroleum (QP) has raised $12.5bn from a multi-tranche bond offering, in order to support its growth plans including at the giant North Field, the company announced on July 1.

$1.5bn in five-year bonds were sold at a 1.375% coupon rate, $3.5bn in 10-year bonds with a 2.25% coupon rate, $3.5bn in 20-year bonds with a 3.125% coupon rate and $4bn in 30-year bonds with a 3.3% coupon rate. QP hailed the sale was "the largest US dollar fixed rate oil and gas offering, the largest corporate issuance in the MENA region, and the largest corporate Formosa tranche raised globally."

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QP met with over 130 international investors at a virtual roadshow on June 28 ahead of the offering, attracting interest from global insurers, asset managers, pension funds and bank treasuries, it said. The order book included over 500 investors, with demand exceeding $40bn.

The Qatari state-owned company took a final investment decision on the $29bn North Field East expansion project in February, which will expand the country's liquefaction capacity from 77 to 110mn metric tons/year. First gas from the project, hailed as the single largest LNG development ever sanctioned, is expected in late 2025.

"The outcome of this offering is a strong testament to Qatar Petroleum’s disciplined approach as an investor and formidable standing not only as the world’s largest LNG producer, but also within the capital and financial markets," QP CEO and Qatari energy minister Saad Sherida Al-Kaabi commented. "The North Field expansion projects will solidify Qatar Petroleum’s leading role in the LNG industry as well as in the energy transition."

Citi and JP Morgan served as global coordinators for the issue, while BofA Securities, Citi, Deutsche Bank, Goldman Sachs International, HSBC, JP Morgan, MUFG and QNB Capital worked as active bookrunners; and Credit Suisse as a passive bookrunner.