DUBAI: The government of Qatar has invited banks to participate in a $5.5 billion sovereign loan, sources aware of the matter said on Tuesday, as it becomes the latest Gulf state to raise funds at a time of stretched state finances due to lower oil prices.
The loan is smaller than the up-to-$10 billion which the government was said by sources last month to be seeking.
The transaction is being arranged by Bank of Tokyo-Mitsubishi UFJ, Mizuho, Sumitomo Mitsui Banking Corp, Deutsche Bank, Barclays and Qatar National Bank, two of the sources said, speaking on condition of anonymity as the information isn't public.
The interest rate on the loan will be between 85 and 95 basis points over the London interbank offered rate (Libor), according to a third source with direct knowledge of the deal.
Marketing of the deal will close in the third week of December, the two sources said.
Last month, Oman started marketing a $1 billion sovereign loan.
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