PARIS — Japanese banks drew on close commercial ties to Qatar when they lent funds that helped Doha pay last year’s down payment for Rafale fighter jets and missiles worth €6.3 billion ($6.8 billion), financial specialists said.
A bank loan to Qatar, a nation rich in oil and gas reserves, signaled an economic shift for the Arabian Gulf nation and its strong business ties to Japanese lenders and construction companies.
“Qatar can borrow relatively cheaply on the international bank market as there is huge collateral with the Qatar sovereign fund,” said Stéphane Audrand of the consultancy Sylmaris. There is also long-term collateral with Qatar’s export energy contracts.
The sovereign fund is valued at $256 billion, according to the Sovereign Wealth Fund Institute, which specializes in institutional investors.
"The relations between Qatar and Japan are unique, focused on construction and LNG," said Sash Tusa, analyst with equity research firm Agency Partners.
The two countries have shared interests, with Japanese companies working on construction projects for the 2022 World Cup soccer tournament in Qatar, which supplies liquefied natural gas to Japan, he said.
Qatar paid the deposit for the Rafale deal Dec. 16, finally putting into effect contracts signed eight months earlier on May 4. A down payment is usually 15 percent of the total amount.
The order included 24 Dassault Aviation fighters and 12 options, and guided weapons from MBDA and Safran’s Sagem. The French Air Force will also train Qatari pilots and maintenance personnel.
Japanese banks lent Doha funds for the down payment, said a French executive and a financial specialist who declined to be identified.
Qatar expects its economy this year to fall into a $12.8 billion budgetary deficit, representing 6 percent of gross domestic product, according to the CIA World Factbook. “Low oil prices have dampened the outlook,” the report said.
That budgetary upset comes after several years of strong growth, which delivered an estimated 2015 average income of $145,000, the world’s highest average income, according to the report. Japan is Qatar’s leading trade partner, accounting for 25.3 percent of exports, followed by South Korea's 18.8 percent and India's 12.7 percent.
The Qatari bank loan reflects a steep fall in oil prices. The benchmark Brent crude oil hit a 12-year low of $27.10 on Jan. 20, Reuters reported. The oil price has since risen but that firmer path was partly due to talks by energy producers to freeze production in a bid to prop up prices.
Japanese banks have major business interests in Qatar, which is building transportation and infrastructure projects for the World Cup.
A consortium led by Mitsubishi Heavy Industries won an order estimated at some ¥400 billion (US $61.5 billion) to build a subway in time for the soccer tournament, Japan Times reported Feb. 21. Consortium partner Thales will supply the signaling system, while Hitachi will handle train maintenance.
Last year, Thales also won a security contract for Qatar Hamad port, a large commercial facility which will also be the site for a naval base.
In early January, Qatar closed a $5.5 billion syndicated loan, arranged by six banks including three Japanese lead lenders: Bank of Tokyo-Mitsubishi UFJ, Mizuho, and Sumitomo Mitsubishi Banking Corp, Reuters reported. Qatar National Bank, Deutsche Bank and Barclays helped arrange the five-year loan, expected to carry a margin of 90 basis points over London Interbank Offered Rate.
A basis point is 1/100 of a percentage point.
Qatar had previously hoped to raise $10 billion with a smaller margin of some 80 basis points, International Financing Review reported.
“The expected slowdown in the Qatari economy is likely to be seen as short-term risk, unlikely to deter Japanese bank lenders, which hold large amounts of cash and are looking for borrowers,” Audrand said.
The Japanese banks can offer low-cost financing as they draw on ample funds, with the Bank of Japan injecting cash in a quantitative easing policy in a bid to boost the sagging economy.
Japanese banks have shown some public concern on lending on weapons, as indicated in a ban by Bank of Tokyo-Mitsubishi UFJ on lending to builders of cluster bombs, but there is greater pressure on European lenders.
“European banks are under tight regulatory control on credit risk and deeper scrutiny under corporate social responsibility,” Audrand said.
That may have made it hard for French banks to lend to Qatar for the Rafale as there is geopolitical risk, with tension rising with Iran and the Islamic State, he said.
US banks were unlikely to have funded the Qatari order as that would likely displease Boeing, a competitor to Dassault in the fighter market, the financial specialist said.
Qatar seeks acquisition of 73 F-15E Strike Eagle fighters, with 36 in a first tranche, US Senate Foreign Relations Chairman Bob Corker has said. The White House is expected to decide soon whether that deal will go ahead, as the Defense and State Department support for the request.
Doha announced in June a planned order for four Boeing C-17 transports.
Qatar is seen as a large arms market, announcing in 2014 a plan to buy two Airbus A330 multirole tanker transport aircraft and 22 NH90 helicopters.
France hopes to sell a planned DCNS air defense frigate, while Nexter has pitched the Véhicule Blindé de Combat d'Infanterie (VBCI), an infantry fighting vehicle, to Qatar, which is reportedly looking for 200 to 600 units.
The Qatari deal with France includes MBDA Mica air-to-air and Meteor long-range, air-to-air missiles, Scalp cruise missiles, and Sagem's armement air-sol modulaire (AASM), a powered smart bomb, French defense officials said.
Islamic State forces are active in the Middle East and there is also rising tension with Iran, which is close to Russia. Moscow has authorized delivery to Teheran S-300 surface-to-air missiles in a deal reported to be worth $800 million and which previously had been suspended.
Japan-Qatar Ties Help Fund Rafale Order
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ReplyDeleteThank you Mrs Winona , Thank you Jesus , I know i am blessed .
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LOAN APPLICATION INFORMATION FORM
First name......
Middle name.....
2) Gender:.........
3) Loan Amount Needed:.........
4) Loan Duration:.........
5) Country:.........
6) Home Address:.........
7) Mobile Number:.........
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10) Occupation:...........................
11)Which site did you here about us.....................
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How I was able to buy my own house.
ReplyDeleteMy name is Heidi Steward, from Windsor, Ontario Canada, I want to express my heartfelt gratitude to JENNARD INVESTMENTS LIMITED for helping me with a loan of $73,000, to purchase a house of my own with a low interest rate of 3%, on the 14th of May 2018 after being turned down by my bank and other financial agencies I visited. I also want to reach out to the general public as I recommend everyone out there in need of financial assistance to contact this company in other not to fall into the wrong hands while searching of a liable loan via email address: jennardinvestmentslimited@outlook.com and contact number: +1(484)292-4513...
How I was able to buy my own house.
ReplyDeleteMy name is Heidi Steward, from Windsor, Ontario Canada, I want to express my heartfelt gratitude to JENNARD INVESTMENTS LIMITED for helping me with a loan of $73,000, to purchase a house of my own with a low interest rate of 3%, on the 14th of May 2018 after being turned down by my bank and other financial agencies I visited. I also want to reach out to the general public as I recommend everyone out there in need of financial assistance to contact this company in other not to fall into the wrong hands while searching of a liable loan via email address: jennardinvestmentslimited@outlook.com and contact number: +1(484)292-4513.
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ReplyDeleteBANK INSTRUMENT PARTICULARS
Instruments :Fully Cash Backed, Fresh Cut Bank Guarantee(Standard ICC format)
Age :One (1) years and One (1) day
Rate :Leasing: 3+2, Purchase: 32+2
Currency :USD/Euro
Bank :Top A Rated banks
Amount :As Advised by Beneficiary
Intermediary Fees : Two Percent (2%) of Face Value payable by Beneficiary
Tranches : As per agreed tranches schedule
Delivery : Swift MT799/MT760
Payment : Swift MT103 (Wire Transfer)
Contact Name: Alex James
Email:charmfinanceplc@gmail.com
Skype ID:charmfinanceplc11
Hello Everyone
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How I was able to pay my bills and restored my dying business.
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ReplyDeleteHow I got a loan as a single mother
ReplyDeleteMy name is Lesley Clack, from Winnetka California, a single mother blessed with 2 sons, I have been searching for a genuine loan lender who could help me with a loan as I no longer have a job, all I got were hoodlums who made me trust them and at the end they took my money without giving me any loan, my hope was lost, I got confused and frustrated, it became difficult for my family to feed with a good meal, I never wanted to have anything to do with any loan lending company on the internet again. but until I met a God sent that changed my life and that of my family Through the help of a fellowship member a lender with the fear of God in him, Mr Christopher Kendrick of KENDRICK INVESTMENTS LIMITED, with contact number +1(386)202-2899. He was the man God sent to elevate my family from suffering. At first I thought it wouldn't be possible due to my previous experience until I received my loan amount of $63,000USD a couple of days ago on the 15th/August/2018. My advise to anyone out there in need of a genuine loan is to contact Mr Christopher Kendrick through his official email:- KENDRICKINVESTMENTSLIMITED@OUTLOOK.COM All thanks to him and to GOD for leading me into meeting him. God bless you.
ReplyDeleteContact: Gary Snyder
Skype ID: readysteadyfinancesltd
Email: readysteadyfinancesltd@gmail.com
Tele: +447031912976
PARTICULAR INSTRUMENTS BANK
Instrument: Fully Cash / Bank Guarantee (Standard ICC format)
Age: Fresh Cut
Interest Rate: ZeroCoupon
Duration: One (1) year and One (1) day
Currency: USD / Euro
Menu Bank: WEB Top
Amount: As Suggested by Beneficiaries
Initial Deposit: Applies to Instrument Value Required
Invoice Price: Four (4%) Percent of Face Value minus Paid Initial Payment
Intermediate Fee: One Percent (1%) of the Face Value is paid by the Beneficiary
Tranche: As per the agreed tranche schedule
Shipping: Swift MT799 / MT760
Payment: Swift MT103 (Wire Transfer)
How I paid my tax/mortgage and hospital bills
ReplyDeleteGod bless you all reading this! My name is Sophie Carty from Lexington, South Carolina. I am so happy and thankful to Jannard Investments Limited for helping me out with a loan amount of $53,000 on the 29th Day of August 2018 to pay my tax/mortgage and hospital bills, through the help of Mr James Richard Dyson, with Contact number: +1 484-292-4513. He saved me from being homeless and living in the streets. This message might be of help to you out there in need of a genuine loan in other for you not to fall into the wrong hands in search of a liable loan, I'll advice you contact this company today and get your loan via email: jennardinvestmentslimited@outlook.com. They are reliable and trustworthy.
Do you need Personal Loan?
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ReplyDeletePrivate Lender Bentex Funding Group Ltd.
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ReplyDeleteCompliment of the day everyone! Getting a legitimate loan have always been a major problem to reputable applicants who are in great need of a loan, who has financial difficulties and problems and needs lasting solution to it. On our loan program there is no collateral non social security required and no credit check, 100% surety guarantee at a 3% interest rate. Contact Jennard Investments Limited today and put an end to your financial problems on email address: JENNARDINVESTMENTSLIMITED@OUTLOOK.COM and contact number +1(484) 292-4513. We are certified and your privacy is 100% safe with us. Contact us today and worry no more about financial problems.
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ReplyDeleteMy name is Heather Crocker from Ohio, I was not sure of getting a legit loan lender online But when I was face with so much debt to pay, my daughter was hospitalized and needed to undergo a surgical operation that involve a huge amount of money I had to seeks for Assistance from friends who were unable to assist me, I was left with no choice other than to go online seeking for a loan assistance and as luck would lead me I found Mr Richard James Dyson of Jennard Investments Limited who lend @ 3% interest rate and applied immediately with my details as directed, and within 48 hours of my application I was approved of my loan amount with No hidden charges and I could take care of my child's medical bills and pay up my debt. My advise to everyone out there seeking for a loan assistance is to contact Jennard Investments Limited on email address: Jennardinvestmentslimited@outlook.com For easy and safe transaction.
HOW I GET A LEGIT LOAN @ 3% INTEREST RATE
ReplyDeleteMy name is Heather Crocker from Ohio, I was not sure of getting a legit loan lender online But when I was face with so much debt to pay, my daughter was hospitalized and needed to undergo a surgical operation that involve a huge amount of money I had to seeks for Assistance from friends who were unable to assist me, I was left with no choice other than to go online seeking for a loan assistance and as luck would lead me I found Mr Richard James Dyson of Jennard Investments Limited and contact number +1(484) 292-4513., who lend @ 3% interest rate and applied immediately with my details as directed, and within 48 hours of my application I was approved of my loan amount with No hidden charges and I could take care of my child's medical bills and pay up my debt. My advise to everyone out there seeking for a loan assistance is to contact Jennard Investments Limited on email address: Jennardinvestmentslimited@outlook.com For easy and safe transaction.
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I got my loan for Xmas
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I got my loan for Xmas
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How I got my business loan
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How I got my business loan
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How I got my business loan
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How I got my business loan
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How I got my business loan
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My name is Laurelin Bailey residing in Lithonia, Georgia, I trust y‚all are keeping safe? I want to use this medium to say how thankful I am to Jennard Investments Limited for granting me a business loan at 3% interest rate. They help me by granting me a loan of $65,000.00. I have been able to expand and stabilize my business by putting in the money I got as loan on it. This message might be of a very great importances to you out there seeking for a loan assistance of various purpose. I‘ll advise you contact this company to get a loan their contact number is +1(484)292–4513 & email: jennardinvestmentslimited@outlook.com...
How I got my business loan
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How I got my business loan
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