Qatar Islamic Bank launches $750m 5 year sukuk

  • Share via facebook
  • Tweet this
  • Bookmark and Share

Qatar Islamic Bank, the Gulf Arab state's largest sharia-compliant lender, will return to global debt markets after two years on Wednesday with a new five-year sukuk, taking advantage of strong liquidity for regional issues.

The lender launched a $750 million Islamic bond after completing investor meetings earlier this week in London, with order books for the deal over $6 billion ahead of launch, according to arranging banks.

The sukuk was launched at 175 basis points over midswaps, at the tighter end of revised guidance released earlier on Wednesday, an indication of the investor appetite for the deal.

QIB, whose biggest shareholder is the country's sovereign wealth fund, the Qatar Investment Authority, received approval for a new $1.5 billion sukuk programme last month, and this issue will be the first sale under it.

While Qatari banks are extremely liquid, much of this cash is in Qatari riyals. With a number of infrastructure projects in the pipeline, as the country builds towards hosting soccer's 2022 World Cup, banks are keen to secure longer-term dollar funding to support these schemes.

QIB only has one outstanding sukuk, its $750 million deal completed in 2010, which was issued at a profit rate of 3.856 percent.

That sukuk, which came under selling pressure this week to make room for the new issue, was bid at a yield of about 2.18 percent, according to Thomson Reuters data.

HSBC Holdings, Standard Chartered, Deutsche Bank and Qinvest, part-owned by QIB, are lead managers on the deal.

Earlier this week, another regional lender, First Gulf Bank , reopened Gulf primary issuance with a $650 million five-year bond which was also substantially oversubscribed.

Related:
Companies

Market Performance

Qatar Islamic Bank
114.5
1.7 1.51 (%)
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Q&A with Noor Bank

Q&A with Noor Bank

Kazim Ali, head of corporate banking at Noor Bank, discusses...

Saudi bank's $6bn IPO ignites religious controversy

Saudi bank's $6bn IPO ignites religious controversy

Plans by National Commercial Bank have prompted some clerics...

Dubai flexes legal muscles as financial court system grows

Dubai flexes legal muscles as financial court system grows

Landmark ruling by the court system in Dubai's financial free...

Most Discussed