Qatar Islamic Bank (QIB) announced that it has completed the issuance of 5-year sukuk worth $ 750 million at a profit rate of 1.95 per cent annually, equivalent to a credit margin of 155 basis points above the average fixed and variable rate swap rates.
This issuance was implemented under the program of Qatar Islamic Bank (QIB) to issue sukuk in US dollars, with a total value of 4 billion US dollars, and listed on the Euronext Dublin exchange. The rate of profit reached by completing this issue is the lowest ever. The profit paid by the bank on its fixed rate bond issues.
This is the bank’s second public issuance in 2020, after it issued the first Formosa sukuk of its kind earlier this year.
The success of this operation was based on a marketing strategy aimed at informing international and regional investors of the bank’s strategy and financial performance.
Basil Jamal, CEO of the Bank Group, commented, “We are pleased with the success of this issuance, which confirms the confidence that investors place in the State of Qatar, and in the Bank’s Board of Directors, its management team and its strategic orientation .. We are proud to have access to a diverse base of international investors. This allows us to implement our financing strategy in a timely and cost-effective manner … Capital markets remain important to us and we value the confidence of investors in our brand. “
He explained that the book of subscription applications reached 2.2 billion US dollars (representing 2.9 times the value of the subscription) from about 100 investors, and in terms of the qualitative classification of investors, it was as follows: 40 percent of banks, 31 percent of asset managers, 8 percent of private banks and 21 percent. 100 sovereign bodies, and the investor base diversified geographically, with 44% of the sukuk allocated to the Middle East, 24% to Asia, 17% to Europe, and 15% to other countries.
He noted, “Qinvest and Standard Chartered Bank have acted as joint coordinators for the deal at the international level. Citi, Credit Agricole, Dukhan Bank, HSBC, Qinvest, QNB Capital and Standard Chartered Bank have acted as lead managers and lead managers, in addition to a bank.” Warba as Co-Director. “