Dukhan Bank Announces Successful Debut Issuance of $800 Million Senior Sukuk

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Doha: Dukhan Bank (Q.P.S.C.) has successfully issued a $800 million 5-year senior unsecured Sukuk with a profit rate of 4.56% per annum representing a spread of 100bps over 5-year US Treasuries.

The transaction marks the debut Senior Sukuk issuance for Dukhan Bank and was met with outstanding demand from global and regional investors. Order books were covered more than 3 times and peaked at $2.6 billion, enabling the bank to issue $800 million the largest issue size achieved by a Qatari Islamic bank since 2020. Final price guidance came in at 100bps over 5-year US Treasuries, representing 30bps tightening from the initial price thoughts of 130bps.

The success of the transaction is reflective of the strength of the Qatari economy and Dukhan Banks strong credit fundamentals. The issuance reaffirms Dukhan Banks position as a leading financial institution in Qatar. It is also a significant milestone for the bank as it continues to broaden its funding base and enhance its presence in international markets.

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hairman and Managing Director of Dukhan Bank, Sheikh Mohammed bin Hamad bin Jassim Al-Thani, commented: “We are delighted with the exceptional success of this debut senior sukuk issuance. This success is a testament to Qatars credit robustness and aligns seamlessly with the ambitious goals outlined in Qatar’s National Vision 2030. We would like to thank everyone who contributed to the success of the transaction.” For his part, Acting Group Chief Executive Officer of Dukhan Bank, Ahmed Hashem, said the overwhelming response to this sukuk issuance reflects the global confidence in both Qatars economic stability and Dukhan Banks strong financial foundation. It also highlights the banks esteemed standing within the international financial community. “We extend our deepest appreciation to the Joint Lead Managers, whose expertise and dedication were instrumental in guiding this transaction,” he said.

Source: Qatar News Agency