How much pain is Qatar in as it goes for first bond sale since blockade?

Qatar is looking to raise new debt and is expected to close the deal later today according to the Financial Times. First time since the Saudis-and-friends blockaded Qatar that it's going on an international capital-raising run. Probably time to analyze how much financial pain the blockade is causing Qatar. 

  • Like 1
  • Upvote 1

Share this post


Link to post
Share on other sites

Welcome Royalblood! I hope that means you've got royal connections that can shed some light for us on the Qatar blockade, not to mention everything that's going down with the Saudi business elite and MBS :)

  • Like 1

Share this post


Link to post
Share on other sites

I think Qatar's in a fair amount of pain that it's huge gas reserves can't even resolve. Getting cut off from the Gulf can't be easy. But Saudis are in pain to, plus trying to finance MBS Vision 2030. Saudis just closed a whopping $11-billion bond deal a couple of days ago ... 

Share this post


Link to post
Share on other sites

Seems like the Saudis rushed in as soon as they saw the Qataris were going to do this and jumped in ahead to close the deal. 

Share this post


Link to post
Share on other sites

nah. that's super saudi, but i know they saudis announced that this bond deal was in the works a while ago. they just weren't sure of the timing then. 

Share this post


Link to post
Share on other sites

Thanks for the welcome! I'll try to shed some light on Gulf relations throughout, without getting into any trouble. Ha! Not the best atmosphere right now for that. 

Share this post


Link to post
Share on other sites

Actually, they just closed the deal. Qataris closed for $12 billion, so beat out the Saudis. Wonder if that hurts?

Share this post


Link to post
Share on other sites

Yes! That's $53 billion in investor demand. So they're sitting nicely now on the debt issue and essentially just beat the Saudis at the blockade game (at least in terms of debt issues). Biggest emerging market bond sale of the year. While the Saudis had been planning their bond sale, of course the timing was still important. They certainly hoped to soak up all the investor demand so the Qataris wouldn't get it. But they failed ... This will have some sort of diplomatic implications. 

Share this post


Link to post
Share on other sites

They sold $3 billion of 5-year debt; $3 billion of 10-year debt, and $6 billion of 30-year debt. Finances shored up, I'd say. 

 

 

Share this post


Link to post
Share on other sites

investors aren't down on Qatar at all. Look no further than Exxon's talks with Qatar that could end up seeing Qatar invest in Exxon's US shale gas resources. The Saudis would love that. An Exxon JV with at state-owned Qatari company is one possibility. 

 

  • Like 2

Share this post


Link to post
Share on other sites

Doesn't Qatar also already majority own the Golden Pass LNG terminal in Texas (with Exxon)?

Share this post


Link to post
Share on other sites

right. that's why of all the love the Saudis get from Washington, their game with Qatar wasn't well received. US shale needs Qatar. 

Share this post


Link to post
Share on other sites

I don't think Qatar is feeling much pain here. And the whole blockade thing seems a little disingenuous. I don't see Qatar folding anytime soon.

Share this post


Link to post
Share on other sites

I think they might be feeling some pain, but not enough to cave. And the Saudi's have bitten off way more than they can chew with all their commitments to mega projects. Even Aramco IPO can't raise enough cash. 

Share this post


Link to post
Share on other sites
Sign in to follow this  
Followers 0