Qatar, the largest exporter of liquefied natural gas in the world, sells Eurobonds to support its finances amid a global trend for borrowers to issue debt securities, mitigating the negative effects of the spread of coronavirus and shocks on global markets last month.

The Gulf monarchy, rated by S&P Global Ratings with an AA- rating, offers 5-, 10- and 30-year bonds, aiming to raise more than 5 billion USD, sources familiar with the matter said retain anonymity.

The government is offering a hefty premium on already issued bonds, with a fixed yield of 4.05% on securities maturing in 2048. Israel, which is valued similarly by S&P, issued bonds totaling 5 billion USD last week, which included a 30-year portion with an interest rate of 3.875%.

“Qatar has a double-A rating and now offers a yield we could only dream of a few months ago”, says Carl Vaughn, managing director at Avenue Asset Management Ltd.

The 5-year tranche has an initial spread target of 335 basis points on US Treasury securities, which would equal the yield of approximately 3.85%. The 10-year bonds are at 340 basis points.

Sales of sovereign debt have resumed following the spread of the coronavirus and falling oil prices in March, and many countries in the region are already taking similar steps.

Panama issued 2.5 billion USD in debt, while Indonesia raised 4.3 billion USD on Monday during the country’s largest supply to date.

“Qatar offers juicy spreads for all three tranches”, said Chirag Doshi, a chief investment officer of Qatar Insurance Company in Doha, which is likely to buy bonds from the country. “The release is expected to generate favorable demand and open the door to more bond sales in the region”, added Chirag Doshi.

The blockages linked to COVID-19 make it difficult for most Gulf economies. Gas prices are closely linked to oil prices, which have fallen by almost half this year since the OPEC+ agreement to curb oil supplies collapsed.