Tribune News Network
Doha
Qatar International Islamic Bank (QIIB) marked a significant achievement by listing its $300 million Tier 1 capital sukuk on the London Stock Exchange (LSE).
The bell-ringing ceremony took place with the attendance of key figures including QIIB CEO Abdulbasit Ahmad Al Shaibei and Abdulla Al Ghanim, commercial attache of Qatar in the UK. Joining them were dignitaries from the LSE and QIIB’s senior officials such as Sheikh Mohammed bin Ali Al-Thani, chief of treasury and investment, and Hossam Khattab, chief of the financial sector.
QIIB’s sukuk issuance forms part of its strategy to strengthen its capital base and expand its reach in the international sukuk market. This latest issuance, designed to bolster the bank’s Tier 1 capital, attracted significant attention from investors globally. The demand for the $300 million sukuk issuance reached over $2.5 billion—more than eight times the offering. This strong interest from investors reflects the growing confidence in QIIB and Qatar’s economic standing.
The issuance was competitively priced at 187 basis points over the US Treasury rate, with a term of 5.5 years. The final yield of 5.45 percent per annum is among the most competitive for similar issuances both regionally and globally. This competitive pricing further demonstrates the trust and confidence of international investors in QIIB’s financial standing and its strategic outlook.
Emphasising the significance of this achievement, QIIB Chairman Sheikh Dr Khalid bin Thani bin Abdullah Al Thani said, “We are pleased to be listed on the London Stock Exchange following the successful issuance of our $300 million perpetual sukuk. This milestone reflects the prestigious standing of the Qatari economy and the high confidence it enjoys from investors worldwide. This trust enables us to further enhance our activities and fortify our financial position both locally and internationally.”
Sheikh Khalid further noted that the listing reinforces QIIB’s commitment to engaging with global investment markets and demonstrates the bank’s strategic focus on strengthening its international presence.
“London remains a leading global financial hub and an important center for Islamic finance. Listing QIIB’s sukuk on this prestigious exchange deepens the longstanding ties we have cultivated with the London Stock Exchange,” he said.
The successful listing on the LSE is not only a testament to QIIB’s robust performance but also highlights the strength and resilience of Qatar’s economy. Sheikh Khalid stressed that each sukuk issuance increases global confidence in QIIB. The substantial demand for this offering further demonstrates the solid relationships the bank has built with investors around the world.
He added that QIIB’s strong performance across various financial indicators and high credit ratings underscore the bank’s operational resilience and capacity for continued growth.
The QIIB CEO said, “We are proud to celebrate another significant milestone in our journey towards growth and innovation as we list our $300 million Tier 1 sukuk on the London Stock Exchange. This is particularly notable as it marks the fourth time QIIB has listed a sukuk on this esteemed exchange and the second time in 2024, following the successful issuance of our $500 million Sustainability Sukuk in January this year.”
He further emphasised that the $500 million Sustainability Sukuk, issued earlier this year, was a landmark for QIIB and Qatar as it represented the first sustainability sukuk issued by a Qatari financial institution.
Al Shaibei highlighted QIIB’s commitment to sustainability and ethical financing, which is reflected in its continued issuance of sukuk designed to meet both financial and environmental goals.
Al Shaibei noted the overwhelming demand for QIIB’s $300 million sukuk issuance, with subscription requests surpassing $2.5 billion. “The strong demand reaffirms our strategic direction and strengthens our confidence in pursuing further growth,” he said. He also pointed out that the pricing of this issuance, which ranks among the most competitive in the region and globally, is a testament to QIIB’s strong market reputation.
Al Shaibei expressed his gratitude to the partner banks and advisors who played a critical role in the successful issuance. He acknowledged the efforts of Standard Chartered Bank, the sole global coordinator, and the joint lead managers including Al Rayan Investment, Citibank, Doha Bank, Dubai Islamic Bank, Dukhan Bank, Emirates NBD Capital, HSBC, QNB Capital, and others for their pivotal roles in ensuring the successful completion of this transaction.
