February 5, 2020 / 8:55 AM / in 16 days

UPDATE 2-Qatar National Bank raises $1 billion in seven-year bonds

(Updates with size, details)

DUBAI, Feb 5 (Reuters) - Qatar National Bank (QNB), the Gulf’s biggest bank by assets, raised $1 billion in seven-year bonds offering a 2.75% coupon, a document showed on Wednesday.

Barclays, Credit Agricole, Mizuho, QNB Capital and Standard Chartered arranged the deal.

QNB Finance is the issuer and Qatar National Bank is the guarantor for the debt sale, which attracted more than $3 billion in orders.

The bonds were marketed with an initial price guidance of around 155 basis points (bps) over mid-swaps but were priced with a final spread of 128 bps over the benchmark.

QNB’s deal follows a $600 million Formosa bond issue last month, as the bank taps different markets to diversify its funding.

Another Gulf bank, Kuwait’s Boubyan Bank, announced on Wednesday its plan to raise hard currency debt through bonds.

Regional banks tend to cover their funding needs in debt markets in the first months of each year, but a rise in bond spreads over the past few weeks might hamper issuance from companies in the region, fund managers said, with the new coronavirus outbreak adding uncertainty to market conditions. (Reporting by Davide Barbuscia; Editing by Louise Heavens and Edmund Blair)

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