Qatar National Bank Issues $1 Billion Bonds Under Medium-Term Note Programme

Qatar National Bank has issued $1 billion in bonds under its medium-term note programme. The move is part of the bank's efforts to diversify its funding sources and manage its liquidity position. The issuance is expected to support the bank's growth strategy and enhance its financial flexibility. The bonds will be used to meet the bank's funding needs and support its business expansion plans.

Doha, Qatar — Qatar National Bank (QNB) has successfully issued $1 billion in bonds under its Medium-Term Note Programme. The issuance, completed on July 17, 2025, is part of QNB's strategic efforts to diversify its funding sources and enhance its liquidity position [1].

The five-year bonds were launched at a price of 70 basis points over the US Treasury yield, a significant tightening from the initial pricing of 100 basis points over US Treasury. The bonds carry a coupon rate of 4.50% [2]. The issuance was heavily oversubscribed, with peak orders reaching three times the issue size, reflecting strong investor interest [1].

The bond issuance attracted significant interest from global investors, including key Asian investors, and was led by a group of joint lead managers and book runners, including Barclays, DBS Bank, Deutsche Bank, Mizuho, QNB Capital, Santander, SMBC, and Standard Chartered Bank [2]. The bonds are expected to be rated Aa3 by Moody’s, A+ by S&P, and A+ by Fitch, matching QNB’s existing ratings [2].

The proceeds from this issuance will be used to meet QNB's general banking purposes and support its business expansion plans. This move underscores QNB's financial strength and its position as the largest financial institution in the Middle East and Africa (MEA) region, according to Senior Executive Vice President for QNB Group Treasury and Financial Institutions Noor Mohammed Al Naimi [1].

References:
[1] https://thepeninsulaqatar.com/article/19/07/2025/qnbgroup-announces-successful-issue-of-bonds-amounting-to-usd-1-billion
[2] https://www.tradingview.com/news/reuters.com,2025-07-17:newsml_Zaw5VzZTK:0-zawya-qatar-national-bank-to-issue-5-year-usd-bonds-ipts-in-ust-100bps-area/