Getty Images/iStockphoto
DUBAI — In its battle over bonds with Saudi Arabia, Qatar struck back on Thursday.
Qatar raised $12 billion in debt Thursday from foreign investors as it wrestles with economic pressure from a trade boycott engineered by its neighbor. The tiny emirate’s bond sale drew more notice than usual because Saudi Arabia surprised foreign investors with its own, last-minute $11 billion bond sale on Tuesday — just as Qatar had begun talking up its own float this week.
Saudi Arabia, the United Arab Emirates, Bahrain and Egypt cut off diplomatic ties last year with Qatar, accusing the Persian Gulf monarchy of meddling in its neighbors’ affairs and supporting Iran. Qatar denies the charges.
Also see: U.S. worries Qatar getting pushed toward Iran’s sphere of influence
The timing of the Saudi bond sale fueled speculation from bankers that the geopolitical rift between the two countries was now playing out in financial markets. Qatari officials declined to comment on Saudi Arabia’s bond sale. But in private, Qatari officials and bankers on the deal say Saudi Arabia timed its $11 billion bond to interfere with Doha’s debt plans. They say the Saudis, by selling debt before Qatar did, sought to reduce the amount of cash available to Qatar, affecting the bond’s pricing and pressuring banks not to work on Qatar’s debt deal. Generally, sovereign-debt issues are spaced apart to maximize the amount of money available for debt issues.
An expanded version of this report appears on WSJ.com.
Also popular on WSJ.com:
Airlines know you hate the airport, and are trying to do something about it.
Trump asks advisers to study rejoining Pacific trade pact talks.