DOHA: The Qatar Exchange (QE) yesterday announced its decision to introduce trading of government bonds issued by the central bank commencing on Thursday. The decision is part of measures to deepen Qatar’s debt market and diversify investment tools for banks and other institutions.
The listing of government bonds is a step towards launching a market for corporate bonds which would help companies finance their expansion plans, the bourse’s chief executive officer Rashid Bin Ali Al Mansoori said yesterday.
Initially, four government bonds will be available for trading and future quarterly issues are expected to be listed. The QE launched trading of government Treasury bills in December 2011.
Al Mansoori explained that the bonds trading entails various investment benefits and advantages on the grounds that they constitute an important source of diversification of securities that would provide a wider range of investors with various types of investment choices. The bonds can provide investors with fixed regular income.
The bonds will be traded in the market through the existing licensed brokerage firms and using the existing trading system currently used for stock trading. Information about the bonds and the trading in bonds will be available on the QE website and through regular information channels.
Qatar Exchange will host seminars and educational meetings for investors and interested parties to familiarise them with bonds, their investment advantages, pricing mechanism, and yield calculations.
The investment in bonds has become a popular investment among major financial institutions, large and small investors all over the world and the demand for bond investments has increased recently due to the advantages generated for both the issuer and the investor. Therefore, any development in the bond market will be in the interest of the local financial community in the first place.
The QE is seeking to occupy a leading position, it has been able to achieve a number of initiatives such as the diversification of products and applying the best international standards in the trading and post trading environments, in line with the development of the Qatari economy and the prospects for future growth outlined by Qatar National Vision 2030.
The Peninsula
