Qatar National Bank issues $600 million Formosa Bond

by   |  VIEW 749

Qatar National Bank issues $600 million Formosa Bond

Doha-based Qatari multinational commercial bank, Qatar National Bank, the largest lender in the Gulf in terms of asset, had launched a $600 million 40-year Formosa Bond as a part of its wider plans to diversify funding sources, a spokesman for the Qatar National Bank had unveiled on Wednesday, the 15th of January 2020, who wished to remain anonymous given the sensitivity of the issue.

Aside from that, two sources familiar with the condition were also quoted saying on condition of anonymity that the US lender Morgan Stanley acted as the sole coordinator of the transaction of Formosa Bonds on behalf of the Qatar National Bank, which has subsidiaries and associates in 31 countries across 3 continents.

Concomitantly, Formosa Bond is a special type of bond native to Taiwan and issued in Taiwan, but launched by the overseas financial institutions at their Taiwanese branches denominated in other currency rather than the New Taiwan Dollar.

Besides, to issue a Formosa Bond in Taiwan, a foreign financial institution must have a credit rating above BBB or higher, while both S&P and Moody’s rated the Qatar National Bank ‘A’. Meanwhile, another source with knowledge regarding the issue added that the deal, which was scheduled to be closed on Thursday (January 16th), had already sold a number of bonds mostly to the Asian insurers alongside other long-term investors securities, however, neither Morgan Stanley, who had arranged the bond issuance, nor Qatar National Bank, had commented over the subject-matter while being asked.