Qatar National Bank (QNB), the country’s largest lender, is expected to sell at least $500 million in a new bond issue on Wednesday, a document from lead managers said, its second debt markets foray this year.

Price guidance for the bond, maturing February 2018, was released at 155 basis points over midswaps, with a transaction earmarked for Wednesday's business. The guidance may tighten ahead of launch, depending on demand for the deal.

QNB, rated A+ by S&P, last tapped debt markets for a $1 billion five-year bond in February, which was issued at 3.375 percent. The bond was yielding 2.1 per cent on Wednesday morning, according to Thomson Reuters data.

Prices on the 2017 bond fell after the new upcoming issue was announced, down to a bid of 105.39 cents on the dollar from 105.4 cents on Tuesday evening, as investors sold off the existing bond to make space for the new deal.

QNB is 50-per cent owned by sovereign wealth fund Qatar Investment Authority and seen as one of the most acquisitive banks in the region, holding stakes in regional lenders as it seeks to expand its footprint.

It is currently in talks to buy the Egyptian arm of Societe Generale.

QNB reported a 10.5 per cent increase in third-quarter net profit, driven by increased interest income and a drop in loan impairments. Shares were flat on Wednesday at 0800 GMT, but are trading 3.2 per cent lower year-to-date.

Deutsche Bank, HSBC Holdings, Mitsubishi UFJ, Standard Chartered and QNB Capital are arranging the bond. – Reuters