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DOHA:Qatar International Islamic Bank (QIIB) has successfully priced a $700m 5-year Sukuk issued at par with a 2.688 percent annual profit rate, which will be settled semi-annually.
The transaction represents QIIB’s first international debt capital markets issuance.
HSBC, QNB Capital and Standard Chartered Bank acted as Joint lead Managers and Joint Bookrunners, with Qatar Islamic Bank and CIMB Investment Bank, Malaysia, as Co-Managers on the transaction.
The Trust Certificates will be listed on the Irish Stock Exchange.
The success of the transaction comes on the back of an extensive marketing strategy aimed at introducing the QIIB credit story to international investors and included a comprehensive roadshow covering the region, Asia and Europe.
QIIB Chairman and Managing Director Sheikh Dr Khalid bin Thani bin Abdulla Al-Thani (pictured) said the great success enjoyed by the bank’s Sukuk, which raised more than $5bn reflects, the confidence enjoyed by the Qatari economy among international investors and reflects the strong financial position of the bank in addition to QIIB’s high ratings from international and reputable rating agencies.
Sheikh Dr Khalid said the $700m 5-year Sukuk is in line with the bank’s strategic plans to actively participate in Qatar’s nation building and actively participate in financing large projects, particularly on the infrastructure side and mega projects, which have either been already announced or expected in the coming months in view of the comprehensive development taking place in Qatar.
Qatar is now one of the best investment destinations in the world.
Sheikh Dr Khalid hoped QIIB would be able to maintain its winning streak and keep up its good financial performance, enabling the bank to keep participating in Qatar’s economicdevelopment.
Abdulbasit Ahmed Al Shaibei, CEO of QIIB, said, “QIIB is very pleased with the success of the transaction, which highlights the confidence placed by investors in the bank’s credit story and its strategy. Given the inaugural nature of the transaction, it was important for us to effectively establish our credit in the international markets; we believe that we have achieved this objective.”
Shaibei also referred to the fruitful meetings the bank had with investors across Asia, Middle East and Europe and these played a key role in creating appetite for International Islamic instruments.
The issue saw strong participation from investors, in particular from Asia and the MENA region. In terms of allocation, the geographic split stood at 50 percent for Middle East, 30 percent for Asia, and 20 percent for UK/Europe/US Offshore investors. In terms of investor type, the transaction was distributed among a wide range of high quality accounts.
With this Sukuk , the bank entered into a new phase by establishing a new relationship with international investors, especially in Asia and Europe. And QIIB witnessed strong demand from investors in Asia for the bank’s Sukuk.