Qatar: Qatar, among the world’s top exporters of liquefied natural gas, tapped global debt markets for $4 billion in a two-tranche issue which attracted hefty order books and allowed the Gulf state to achieve more favorable pricing than initially indicated.

Qatar sold a $1 billion, three-year bond at 15 basis points over US Treasuries and a $3 billion Islamic bond, or sukuk, with a 10-year tenor at 20 basis points over the same benchmark, according to a document from a lead manager.

Orders for the issuance hit $13.5 billion ahead of launch, fixed income news service IFR reported, allowing the sovereign — rated AA by Fitch and S&P and Aa2 by Moody’s — to tighten pricing substantially from earlier guidance.

In the second quarter of 2025, Qatar posted a budget deficit of 757 million riyals ($208 million) as public spending rose 5.7 percent from a year earlier and lower oil prices weighed on revenue.

It raised $3 billion from debt markets in February.

Several Gulf sovereigns have issued debt in recent weeks as strong global appetite and attractive borrowing costs have allowed governments to increase funding sources to help refinance debt, plug budget deficits, and invest in ambitious economic diversification plans.

Deutsche Bank, Goldman Sachs International, QNB Capital and Standard Chartered Bank were mandated global coordinators on Qatar’s bond issue. They were joined by Santander, Citi, Emirates NBD Capital, ICBC, IMI-Intesa Sanpaolo and SMBC as joint lead managers.