High demand for the first international debt issuance by Bermudian-based Qatar Re saw its perpetual Tier 2 notes oversubscribed 14 times.

The reinsurer successfully placed $450 million of the notes. The issue had attracted more than 290 orders for more than $6.5 billion.

Khalifa Abdulla Turki al-Subaey, president of the reinsurer’s parent Qatar Insurance Company, said: “Interest from investors was outstanding following an extensive roadshow.

“This new $450 million issue reinforces our efficient capital structure that offers excellent security to policyholders and positions us well for the next phase of growth.”

The company reported that the issuance achieved a “very balanced global distribution”, coming out at 30 per cent in Asia, 29 per cent in Britain, 20 per cent in the Middle East, 19 per cent in continental Europe, and the remainder in other regions.

The Reg S Perpetual non-call 5.5 subordinated Tier 2 notes are guaranteed on a subordinated basis by QIC to institutional investors. The notes represent Qatar Re’s debut issuance in the international debt capital markets.

The initial coupon has been set at 4.95 per cent per annum. It will be fixed until the first call date in September 2022 and reset to five-year MS plus the initial margin, and every five years thereafter.

QIC is a global diversified insurance and reinsurance company based out of Doha, Qatar.

In a statement, it said the issue will enable it to respond to “increased demands and support its comprehensive service proposition with substantial capacity”.

The notes will be treated as Tier 2 capital from a regulatory perspective in Bermuda for Qatar Re and Qatar for QIC.

The notes, rated BBB+ by S&P, have been structured to meet S&P’s requirements for intermediate equity content within its total adjusted capital, and equity credit from AM Best, for the QIC Group.

Settlement of the notes is expected to take place on Monday.