Bermuda-based Qatar Re, a subsidiary of Qatar Insurance Company, has announced the successful issue of $450 million Reg S Perpetual non-call 5.5 subordinated Tier 2 notes guaranteed on a subordinated basis by QIC to institutional investors. The company said that this represents its debut issuance in the international debt capital markets.
According to the company the issue attracted over 290 orders of more than $6.5 billion. These orders came from investors all over the world, comprising 30 percent Asia, 29 percent UK, 20 percent Middle East, 19 percent Continental Europe and 2 percent from other regions.
Qatar Re said that the initial coupon has been set at 4.95 percent per annum. It will be fixed until the first call date in September 2022 when it will be reset to 5yr MS plus the initial margin, and will be reset every 5 years thereafter.
The notes have been assigned an issue rating of 'BBB+' by S&P Global Ratings and provide eligible Tier 2 capital to further enhance Qatar Re’s financial strength. Qatar Re has a rating of 'A/Stable' from S&P Global Ratings and 'A (Excellent)' from AM Best.
"With the introduction of tradable notes, Qatar Re is seizing the opportunity to finance future growth on the back of a modern efficient capital structure," said Gunther Saacke, CEO of Qatar Re. "The notes have reduced our cost of capital and are a significant milestone on our path to establishing Qatar Re in the top tier of our industry.
"The issuance has taken our company beyond the $1 billion capital mark; an important threshold to potential clients who make this a prerequisite. The increased capital strength will enable us to respond to increasing demand from existing and new clients for substantial capacity as part of our comprehensive service proposition."
Qatar Re, Gunther Saacke, Tier 2 notes, Bermuda