Qatar Petroleum (QP) has raised $12.5bn by offering a multi-tranche bond to fund the development of the North Field expansion projects.
The proceeds from the bond offering will also be used by the state-owned oil firm to boost the North Field’s gas field’s production capacity from 77 million tonnes per annum (Mtpa) to 110Mtpa by 2027, Bloomberg reported.
The largest US dollar fixed-rate oil and gas bond received orders of more than $40bn from global insurers, asset managers, pension funds and bank treasuries.
QP attribute the strong demand was due to favourable market conditions.
The bond offering comprises five, ten and 20-year conventional tranches, as well as a dual-listed 30-year Formosa tranche.
Qatar Petroleum said that the bond offering is the largest corporate issuance in the Middle East and North Africa (MENA) region, and the largest global corporate Formosa tranche raised.
Qatar Petroleum president and CEO and Qatar Minister of State for Energy Affairs Saad Sherida Al-Kaabi said: “The outcome of this offering is a strong testament to Qatar Petroleum’s disciplined approach as an investor and formidable standing not only as the world’s largest LNG producer but also within the capital and financial markets.
“The North Field expansion projects will solidify Qatar Petroleum’s leading role in the LNG industry as well as in the energy transition.”
For this transaction, Citi and JP Morgan served as global coordinators while BofA Securities, Citi, Deutsche Bank, Goldman Sachs International, HSBC, JP Morgan, MUFG and QNB Capital acted as active bookrunners.
Additionally, Credit Suisse acted as Passive Bookrunner for Qatar Petroleum on the transaction.