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Gas manufacturer Qatar sells $2.5 bln in green dollar bonds, IFR says

Major gas manufacturer Qatar has actually introduced a $2.5 billion two-part green bond, set income news service IFR stated on Tuesday.

The Gulf Arab state has actually offered $1.0 billion in a five-year tranche at 30 basis points (bps) over U.S. Treasuries (UST) and $ 1.5 billion in 10-year bonds at 40 bps over the very same benchmark, the IFR report said.

The price was tightened from initial guidance of 70 basis points over UST for five-year bonds and from 80 bps for the 10-year note after combined orders topped $10.9 billion.

It is the Gulf Arab state's very first external debt issuance in four years.

The auction, which is being led by Qatar's ministry of finance, will provide funds to assist fund qualified green projects.

We're not starving for the cash. It's purely to make a. statement, Qatari Finance Minister Ali Al Kuwari stated in. January, describing the organized sale.

The market is hungry for issuance. We've been approached by. many financiers.

Qatar, among the world's biggest exporters of liquefied. natural gas (LNG), is massively expanding gas production and. expects to increase output by 85% by the end of the decade.

Worldwide accountancy firm KPMG, in a December report,. urged Qatar to provide green bonds and accept sustainable. financing mechanisms to satisfy its sustainability objectives.

Credit Agricole and HSBC were chosen as green structuring. organizers. Both also served as worldwide planners with. JPMorgan and QNB Capital while Barclays, Citigroup, Deutsche. Bank, Goldman Sachs International, SMBC Nikko Capital. Markets and Standard Chartered were lead supervisors.