Japan’s Mizuho pulled out of Qatar bond

Banks wary of doing business amid Gulf dispute

DUBAI, April 17, (RTRS): Japan’s Mizuho Securities withdrew from its role as a bookrunner for a US dollar-denominated bond issued by Qatar last week, in the latest sign international banks are wary of doing business in the Gulf state amid a regional dispute.

Saudi Arabia, the United Arab Emirates, Bahrain and Egypt in June cut diplomatic and transport ties with Qatar, which they accuse of backing terrorism. Qatar denies this, and says the pressure is aimed at stripping it of its sovereignty.

Qatar issued $12 billion of bonds last week, its first international debt sale since the dispute erupted.

The gas-rich Gulf state had appointed eight banks including Mizuho, part of Japan’s Mizuho Financial Group, to lead a series of investor meetings ahead of the issue.

But when the bond was marketed on Thursday, Mizuho was no longer in the group.

“Mizuho can confirm it was a bookrunner to the State of Qatar’s US Dollar denominated bond sale, and has since withdrawn from the transaction,” the bank said in a statement on Tuesday.

“Due to client confidentiality, we are not able to provide further comment on the matter.”

International banks with business in the Gulf have been treading carefully since the regional dispute flared up, seeking to maintain relationships on both sides.

HSBC, one of the most active banks in the Gulf, turned down a role in Qatar’s bond sale as it had decided not to take high-profile roles in major Qatari debt transactions, sources told Reuters earlier this year.

The bank, however, retains a branch in Qatar and has not disengaged from the country.