QIIB announced the successful issuance of a $300 million Tier 1 capital sukuk, aimed to strengthen its capital position and benefitting from opportunities in the global sukuk market.
The Sukuk witnessed great demand from investors, the total order book reached more than eight times the issuance size, which confirms confidence in QIIB and the Qatari economy.
The subscription to QIIB Sukuk came from 115 investors around the world, with the total subscription requests exceeding amount of $2.5 billion. The issue was priced at a profit margin of 187 basis points over the 5.5 year U.S. treasury , with a final return of 5.45 percent per annum.
The issuance was arranged by a group of banks, namely Standard Chartered Bank as the sole global coordinator, along with Al Rayan Investment Company LLC, Citibank, Doha Bank, Dubai Islamic Bank, Dukhan Bank, Emirates NBD Capital, HSBC, Bank Lesha, Mashreq, QNB Capital, and Warba Bank as joint lead managers and book runners.
Commenting on the issuance, QIIB Chief Executive Officer Dr. Abdulbasit Ahmed Al Shaibei said, “This is our second sukuk issuance this year, that has attracted strong demand from investors worldwide. The favorable pricing of these sukuk reinforces the global appeal and strength of the Qatari economy, which continues to enjoy exceptional investment attractiveness. Qatars strong and attractive economy plays a pivotal role in supporting the countrys institutions, especially its banks.” “The significant demand for our sukuk reflects the financial strength and credit worthiness of QIIB, which is backed by the assets quality , strong liquidity, robust capitalization, and high efficiency in the banking sector. Reports from international credit rating agencies confirm our strong profitability and stable outlook, ensuring our long-term growth prospects,” he added.
The CEO explained that issuing the sukuk within the Tier 1 capital framework is a strategic move to bolster QIIBs financial strength and meet the bank’s growth ambitions. He added that it also enhances the bank’s presence in international markets and strengthens relationships with global investors and financial institutions.
He highlighted that QIIB issued a $500 million sustainable sukuk earlier in the year, listed on the London Stock Exchange. He cited the “phenomenal response” from investors across the globe to the issue, given the bank was Qatars first institution to issue sustainable sukuk.
“This issuance underscores our commitment to sustainability and aligns with Qatar National Vision 2030, as well as the Third Financial Sector Strategy launched by the Qatar Central Bank, which prioritizes environmental, social, and governance (ESG) principles. Our efforts contribute to the continued development and prosperity of the financial sector from multiple dimensions,” he said
Source: Qatar News Agency