Qatar is set to sell QR4 billion or US$1.1 billion in three year and five year bills and sukuk bonds. This was reported by its state run Qatar News Agency. The country's central bank would be offering local banks QR3 billion worth of bonds and QR1 billion in sukuk or Shariah compliant bonds.
The local currency issues would be placed every quarter without determining the value of the maturity being sold.
Last January, Qatar mission chief for the International Monetary Fund told Reuters that the issuance is being done to build a domestic sovereign yield curve. When sought for comment, the Qatari Central Bank declined to make any.
This is not the first bond issue by the Gulf kingdom, as it did the same last January 2011 where the Qatari Central Bank issued a QR50 billion or US$14 billion three year bond for local banks to drain excess money from its banking system.
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