Qatar Re Successfully Issue $450M Notes

March 15, 2017

Qatar Reinsurance Company Limited announced the successful issue of US$ 450 million Reg S Perpetual non-call 5.5 subordinated Tier 2 notes guaranteed on a subordinated basis by QIC to institutional investors, representing its debut issuance in the international debt capital markets.

The issue attracted over 290 orders of more than US$ 6.5 billion and achieved a balanced global distribution of investors comprising 30% Asia, 29% UK, 20% Middle East, 19% Continental Europe and 2% from other regions.

The initial coupon has been set at 4.95% per annum. It will be fixed until the first call date in September 2022 when it will be reset to 5yr MS plus the initial margin, and will be reset every 5 years thereafter.

The notes have been assigned an issue rating of “BBB+” by S&P Global Ratings and provide eligible Tier 2 capital to further enhance Qatar Re’s financial strength. Qatar Re continues to benefit from a rating of “A/Stable” from S&P Global Ratings and “A [Excellent]” from A.M Best.

Gunther Saacke, Qatar Re’s CEO, commented: “With the introduction of tradable notes, Qatar Re is seizing the opportunity to finance future growth on the back of a modern efficient capital structure. The notes have reduced our cost of capital and are a significant milestone on our path to establishing Qatar Re in the top tier of our industry.”

He continued, “The issuance has taken our company beyond the US$ 1 billion capital mark; an important threshold to potential clients who make this a prerequisite. The increased capital strength will enable us to respond to increasing demand from existing and new clients for substantial capacity as part of our comprehensive service proposition.”

BNP Paribas acted as sole structuring adviser on this transaction. Joint bookrunners were BNP Paribas, HSBC Bank, Emirates NBD and National Bank of Abu Dhabi.

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