Doha Bank sold a US$500m five-year bond inside fair value on Wednesday, with the deal appealing to investors beyond the GCC region.

Ironically, with the sukuk market trading at tight valuations, the Qatari lender was able to take advantage of the fact that it issued conventional bonds, broadening its appeal to international investors. That, in turn, helped it achieve tight pricing.

"It was a highly diversified book," said a lead banker. "More than 50% went to international accounts." Allocation statistics have yet to be published.

Books opened on the no-grow bond issue at 155bp area over Treasuries. The bank had US$500m of 5.25% March 2029s, which leads spotted at a G-spread of about 117bp pre-announcement.

With books growing to more than US$2.25bn, pricing was moved in to plus 120bp. Not only did the bonds come inside fair value, but also offered a minimal pick-up over national champion Qatar National Bank's January 2029s, which were at a G-spread of 100bp as Doha Bank (Baa1/A; Moody's/Fitch) was pricing.

"It's a good credit, with a bit of spread so it gets people going," said the banker.

It was the second public offering from a Qatari financial institution this year after QNB's US$700m five-year Formosa.

ANZ, Deutsche Bank, Emirates NBD Capital, HSBC, Kamco Invest, Mashreq, MUFG, QNB Capital and Standard Chartered were the lead managers on the Doha Bank transaction.