(Updates with bond prices in fifth paragraph)
Feb. 14 (Bloomberg) -- Qatar National Bank SAQ, the Doha- based lender bidding to buy Dexia SA’s Turkish unit, raised $1 billion from the sale of five-year bonds, according to three people familiar with the deal.
The bond may be priced to yield 235 basis points above the benchmark mid-swap rate, said the people, declining to be identified because the details are private. Barclays Capital, Citigroup Inc., HSBC Holdings Plc, Standard Chartered Plc and QNB Capital arranged the transaction, the people said.
The bank, rated Aa3 by Moody’s Investors Service, the fourth-highest investment grade, last sold bonds in November 2010, raising $1.5 billion in five-year notes at a coupon of 3.125 percent. That offering received $6 billion in bids.
The yield on Qatar National’s bonds due 2015 has dropped 14 basis points, or 0.14 percentage point, this year to 3.073 percent today, according to prices compiled by Bloomberg. The average yield on bonds sold by financial services companies in the six-nation Gulf Cooperation Council, which includes Qatar, dropped 36 basis points over the same period, according to the HSBC/NASDAQ Dubai GCC Financial Services U.S. Dollar Bond Index.
Qatar National Bank, the Persian Gulf nation’s biggest lender by assets, is the last serious bidder for Dexia’s Denizbank AS after the withdrawal of HSBC and OAO Sberbank, people familiar with the process said last month. The bank “hopes” to complete the purchase of Denizbank this year if “the price is right,” Chairman Yousef Hussain Kamal said Jan. 29.
Qatar National Bank’s profit rose 32 percent last year to 7.5 billion riyals ($2 billion) as loans and advances increased, beating analysts estimates. The shares gained 0.2 percent to 136.3 riyals in Doha today, giving the lender a market capitalization of 95.4 billion riyals.
--Editors: Shaji Mathew, Claudia Maedler
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