- Moody’s and S&P give the unsecured notes maturing in October 2034 an A2 and A rating.
Ooredoo, the leading telecommunications company in Qatar, has successfully raised $500 million through international bond offering.
The strategic financial maneuvre not only reinforces the company’s position in the global financial markets but also showcases the increasing confidence of investors in the telecommunications sector, particularly in the MENA region.
The bond issuance comprises senior unsecured notes maturing in October 2034, featuring an attractive coupon rate of 4.625 per cent. The overwhelming interest in the offering, which was oversubscribed by 3.6 times, reflects robust demand from a diverse array of global investors.
These include asset managers, fund managers, insurance and pension firms, banks, and sovereign wealth funds, spanning multiple regions such as the Middle East, Asia, Europe, the United Kingdom, and the United States.
The strength of this bond offering is further underscored by the ratings from two of the largest credit rating agencies, Moody’s and S&P, which accorded the notes an A2 and A rating, respectively. Such ratings indicate a strong capacity of Ooredoo to meet its financial commitments, enhancing the allure of the investment.
Financial strategy
The notes were issued by Ooredoo International Finance Limited, a wholly owned subsidiary of the telecom firm, under its expansive $5 billion Global Medium Term Notes programme, listed on the Irish Stock Exchange.
Notably, the spread of 88 basis points over 10-year US Treasuries marks the narrowest spread recorded by Ooredoo, signaling a favourable outlook from the market.
The achievement reflects not only the company’s solid financial foundations but also the effectiveness of its financial strategy, which attracted prominent bookrunners such as Citigroup Global Markets Limited, J.P. Morgan Securities, and HSBC Bank.