Tribune News Network
Doha
Qatar Islamic Bank (QIB), rated A1 by Moody’s and A by Fitch, has successfully issued a $750 million Sukuk with a profit rate of 4.485 percent and a tenure of 5 years.
The profit rate equated to a credit spread of 100 basis points over the US Treasury rate, which was 15 basis points below QIB’s fair value and lower than the secondary market spreads of all Qatari banks.
This reflects the strong confidence of international investors in Qatar’s economic stability and QIB’s credit quality. Notably, QIB’s profit rate was the lowest achieved by any GCC bank for a senior unsecured 5-year issuance in 2024.
QIB announced its intention to issue the Sukuk on Monday morning and engaged with European, Asian, and US fund managers. The order book opened on Tuesday, quickly reaching a peak of $2.2 billion, representing an oversubscription rate of three times, one of the highest levels seen for Sukuk issuances.
The strong demand allowed QIB to tighten pricing by 30 basis points in one iteration to 100 basis points over the US Treasury rate from initial pricing thoughts of 130 basis points. Investors included banks, private banks, fund managers, and agencies worldwide.
QIB Group CEO Bassel Gamal said, "QIB is pleased with its successful return to the international capital markets. Our deal showcases the large and diversified investor following that Qatar enjoys and highlights the confidence placed by international and regional investors in the bank. We are proud of the exceptional investor demand and the confidence placed in our business.”
He further added that this issuance not only reaffirms QIB’s position as a leading Islamic bank but also demonstrates its commitment to supporting Qatar’s financial markets and economic vision. The success of the Sukuk sets a benchmark for future issuances in the region, reflecting QIB’s strategic growth and resilience.
Joint Lead Managers and Bookrunners included Bank ABC, Dukhan Bank, Emirates NBD Capital, HSBC, KFH Capital, Mashreq, Mizuho, QNB Capital, Q Invest, Standard Chartered Bank, and The Islamic Corporation for the Development of the Private Sector.