DUBAI: Qatar National Bank has closed the syndication for its dual-tranche $3.5 billion senior unsecured term loan, the Gulf's biggest lender said on Monday.

Sources had told Reuters last month that QNB was planning to raise the loan to refinance an existing $3.5 billion debt facility raised in 2017 which matures next month.

The loan included a $2 billion three-year tranche and a $1.5 billion five-year tranche and will be used for general corporate purposes.

QNB said in a statement that it was well supported by 34 international banks.

Abdulla Mubarak al-Khalifa, QNB's group CEO, said it was the largest five-year dual-tranche syndication ever issued by a bank in the Middle East.

"This tranche also attracted the interest of global banks and helped us further broaden our investor base. The issuance was substantially oversubscribed which, despite the challenges of COVID-19, demonstrates our standing as a high quality issuer," he said in the statement.

It was underwritten by HSBC, Mizuho, Bank of America Merrill Lynch, Barclays , MUFG , Maybank Kim Eng Securities, Standard Chartered, SMBC and United Overseas Bank .

JPMorgan Securities and Intesa Sanpaolo joined the underwriters as initial mandated lead arrangers.