* QNB launches bond at 145 bps over midswaps
* Will be lender's second debt sale this year
* QNB in talks to buy SocGen's Egypt arm
(Adds launch details, updates share price)
By Rachna Uppal
DUBAI, Nov 7 Qatar National Bank
(QNB), the Gulf Arab state's largest lender, launched a $1
billion bond on Wednesday, lead managers said, its second debt
markets foray this year.
The bond, due to mature in February 2018, launched at a
spread of 145 basis points over midswaps, tighter than guidance
indicated earlier in the day, as demand for the deal was strong.
Sources said order books reached $3 billion ahead of the
launch, and that final pricing and allocations were due later on
Wednesday. The terms of the deal are not expected to change.
QNB, rated A+ by S&P, last tapped debt markets for a $1
billion five-year bond in February, which was issued at 3.375
percent. The bond was yielding 2.1 percent on Wednesday morning,
according to Thomson Reuters data.
Prices on the 2017 bond fell after the new
upcoming issue was announced, down to a bid of 105.39 cents on
the dollar from 105.4 cents on Tuesday evening, before
recovering again later in the day.
QNB is 50-percent owned by sovereign wealth fund Qatar
Investment Authority and seen as one of the most acquisitive
banks in the region, holding stakes in regional lenders as it
seeks to expand.
It is currently in talks to buy the Egyptian arm of Societe
QNB did not say what the proceeds of the bond sale would be
used for, but will have raised nearly $4 billion from the debt
and syndicated loan markets so far this year following the sale,
after securing $1.8 billion from a loan in August.
The lender reported a 10.5 percent increase in third-quarter
net profit, driven by increased interest income and a drop in
loan impairments. Shares ended flat on Wednesday, but are
trading 3.2 percent lower year-to-date.
Deutsche Bank, HSBC Holdings, Mitsubishi
UFJ, Standard Chartered and QNB Capital are
mandated bookrunners on the deal.
(Reporting by Rachna Uppal and David French; Editing by Ron