Doha – Mubasher: The Qatari government launched a $5.5 billion loan into general syndication, making it the Gulf state to resort to borrowing, in light of the recent falls in oil prices.
Qatar National Bank, in addition to other global banks, will arrange the five-year loan, with an interest rate of more than 90 basis points over London Libor, according to Al Sharq newspaper.
The government firstly sought to get a loan worth $10 billion with an interest rate of more than 80 points, but it was forced to adjust its expectation amid lack of liquidity and high interest rates in the region, given the huge number of financing deals in the Middle East.
Bank of Tokyo-Mitsubishi UFJ, Mizuho Bank, Sumitomo Mitsui Banking Corporation (SMBC), Deutsche Bank and Barclays will arrange the loan, which is expected to be received by Qatar in December, bankers told the Qatari newspaper.
Among the offers deals, a loan worth $800 million by Commercial Bank of Qatar, $500 million by Doha Bank and $400 million by Gulf International Bank.
