Qatar Telecom prices $1 bln of 10-year notes

Wed Dec 12, 2012 1:19pm EST

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Dec 12 (IFR) - Qatar Telecom on Wednesday priced a $1 billion offering of 10-year notes at the lower end of its price guidance.

The state-owned telecoms operator priced the A2/A/A+ rated notes at 175 basis points over US Treasuries via joint leads Barclays, HSBC, Mitsubishi UFJ, Mizuho, Morgan Stanley and QNB Capital.

Price guidance was for 175bp to 180bp over Treasuries.

Initial guidance had gone out overnight at Treasuries plus 187.5bp, but that was tightened after the deal attracted an order book of more than $13 billion, according to market sources.

Companies in the Gulf have been taking advantage of low borrowing costs to raise funds to refinance existing debt or finance expansion.

Qatar Telecom last tapped the market in the fourth quarter of 2010, raising $2.75 billion by issuing 10-year and 15-year notes, and retapping notes due 2016.

(Reporting by Andrea Johnson; Editing by Ciara Linnane)