QIB closes $750 million 5-year Sukuk

October 22, 2020

Qatar Islamic Bank (QIB) has successfully closed a $750 million five-year Sukuk with a profit rate of 1.95 percent per annum, which is equivalent to a credit spread of 155 basis point (bps) over the 5-year Mid Swap Rate.
The transaction was executed under QIB’s $4 billion Trust Certificate Issuance Programme which is listed on Euronext Dublin. The profit rate achieved is the lowest ever paid by QIB on their fixed rate Sukuk issuances. This is QIB’s second public issuance in 2020, having issued the first ever Formosa Sukuk earlier this year.
The success of this transaction came on the back of a marketing strategy aimed at updating international and regional investors with QIB’s strategy and financialperformance.
QIB Chief Executive Officer Bassel Gamal said, “QIB is very pleased with the success of this transaction, which highlights the confidence placed by investors in Qatar, the bank’s board, management team and its strategic direction. We are proud to have access to a diverse and international investor base, which allows us to implement our funding strategy in a timely and cost efficient manner. The capital markets continue to remain important for us and we appreciate investors confidence in our name.”
He said investor demand was strong and the order book reached $2.2 billion representing 2.9 times oversubscription from approximately 100 investors. In terms of investor categorisation, 40 percent were banks, 31 percent were asset managers, 8 percent were private banks, and 21 percent were sovereign. More importantly, the investor base was diversified geographically, with 44 percent of the Sukuk being allocated to the Middle East, 24 percent to Asia, 17 percent to Europe and 15 percent to other countries.
“QInvest and Standard Chartered Bank acted as Joint Global Coordinators on the transaction. Citi, Credit Agricole, Dukhan Bank, HSBC, QInvest, QNB Capital and Standard Chartered Bank acted as Joint lead Managers and Joint Bookrunners with Warba Bank as the Co Manager,” he said.


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