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Jun 2020

Qatar: QIC issues notes raising $300m

Source: Middle East Insurance Review | Jun 2020

Qatar Insurance Company (QIC) has announced the successful issuance of $300m perpetual non-call 5.5 year subordinated Tier 2 capital notes despite the prevailing financial market turbulence across the globe.
 
The notes were issued through QIC (Cayman) Limited, a special purpose vehicle incorporated in the Cayman Islands, for the purpose of the issuance and guaranteed by QIC. The notes will be rated BBB+ by S&P.
 
The notes are perpetual in nature with the first call date on 30 October 2025 and callable on every coupon date thereafter.
 
The initial coupon on the notes has been set at 6.25% per annum, payable semi-annually. It will be fixed until the first call date. If not called, the coupon on the notes will be reset on the first call date and every five years thereafter to the then prevailing yield for US Treasury Securities having maturity of five years plus initial credit spread.
 
QIC said the issue will enable it to further support the group’s robust capital position. The notes are expected to be treated as Tier 2 capital under Qatar Central Bank regulations for the solvency ratio calculations.
 
Further, the notes have been structured to meet S&P’s requirements for intermediate equity content within its total adjusted capital, and equity credit from AM Best, for the QIC Group.
 
QIC group president Khalifa Abdulla Turki Al Subaey said, “Despite the prevailing turbulence of the COVID-19 pandemic outbreak, interest from investors was outstanding which proves the level of confidence the investors have in the group. This new $300m issue reinforces our efficient capital structure that offers excellent security to policyholders and positions us well for the next phase.” M 
 
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