Qatar’s central bank has begun selling seven-year debt to extend the yield curve it’s developing for local companies to issue debt, the governor said.
“We try to create our yield curve and extend it to longer period of time,” central bank Governor Abdullah Saud Al Thani said in a phone interview.
The bank is aiming to create a “risk-free interest rate” as a benchmark for local companies to issue their own bonds, he said.
The central bank announced plans yesterday to sell 950 million riyals ($261 million) of seven-year conventional treasury bonds on June 15 for the first time, as well as 2.1 billion riyals of three-year bonds and 950 million riyals of five-year bonds.
The bank sold seven-year Islamic bonds, called sukuk, in April. It began quarterly issuances of three-year and five-year treasury bonds to local banks last year and started selling monthly treasury bills in 2011.
Corporate bond in Qatar slowed to the lowest rate in three years during the first half of 2014 as companies instead took out loans from banks offering the lowest rates in eight years.
“This is step by step, it’s well planned,” Al Thani said. “We are creating our capital market.”
bloomberg.com
“We try to create our yield curve and extend it to longer period of time,” central bank Governor Abdullah Saud Al Thani said in a phone interview.
The bank is aiming to create a “risk-free interest rate” as a benchmark for local companies to issue their own bonds, he said.
The central bank announced plans yesterday to sell 950 million riyals ($261 million) of seven-year conventional treasury bonds on June 15 for the first time, as well as 2.1 billion riyals of three-year bonds and 950 million riyals of five-year bonds.
The bank sold seven-year Islamic bonds, called sukuk, in April. It began quarterly issuances of three-year and five-year treasury bonds to local banks last year and started selling monthly treasury bills in 2011.
Corporate bond in Qatar slowed to the lowest rate in three years during the first half of 2014 as companies instead took out loans from banks offering the lowest rates in eight years.
“This is step by step, it’s well planned,” Al Thani said. “We are creating our capital market.”
bloomberg.com
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