The reinsurance subsidiary of Qatar Insurance Co., Qatar Reinsurance Co. (Qatar Re) which is headquartered in Bermuda, has successfully raised $450 million through a debt issuance in the form of a perpetual bond, a move that will help the firm expand further.
Qatar Re is the first Gulf region owned re/insurer to raise capital with such an issue and this demonstrates its appetite to expand, with the capital destined to support further growth, as well as the appetite of investors to support capital raises from re/insurers.
Reports state that the debt issuance was significantly over-subscribed, with investor demand far outstripping the $450 million that was issued. This demand helped to ensure the pricing was also very attractive for Qatar Re.
Initially, price guidance for the subordinated Tier 2 non-call 5.5-year bond was in the 5.5% region, earlier on Monday. The price guidance was subsequently tightened to 5.125% initially, and then down further to 5%, according to reports, before settling at just 4.95% for launch.
