Qatar's Ahli Bank raises $300 million with first AT1 bonds
- It sold the bonds at 4%, tightening by 75 basis points from initial price guidance after receiving more than $1.9 billion in orders.
- The issuance is Qatar's first conventional AT1 bond sale since Qatar Islamic Bank's issue of AT1 sukuk, or Islamic bonds, in 2016.
DUBAI: Qatar's Ahli Bank launched a debut $300 million Additional Tier 1 (AT1) bond offering on Wednesday, a document showed.
It sold the bonds at 4%, tightening by 75 basis points from initial price guidance after receiving more than $1.9 billion in orders, the document from one of the banks on the deal showed.
The issuance is Qatar's first conventional AT1 bond sale since Qatar Islamic Bank's issue of AT1 sukuk, or Islamic bonds, in 2016.
AT1 bonds, the riskiest debt instruments banks can issue, are designed to be perpetual in nature, but lenders can call them after a specified period.
Ahli Bank's offering is non-callable for five years.
Barclays, Mizuho, QNB Capital and Standard Chartered are arranging the deal, which is expected to launch later on Wednesday.
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