QIIB successfully issues $300mn Tier 1 capital sukuk

QIIB has announced the successful issuance of a $300mn Tier 1 capital sukuk, aimed to strengthen its capital position and benefitting from opportunities in the global sukuk market.

The sukuk witnessed great demand from investors with the total order book reaching more than eight times the issuance size, which confirms confidence in QIIB and the Qatari economy.

The subscription came from some 115 investors around the world, with the total subscription requests exceeding amount of $2.5bn.

The issue was priced at a profit margin of 187 basis points over the 5.5yrs US Treasury, with a final return of 5.45% per annum.

The issuance was arranged by a group of banks, namely Standard Chartered Bank as the sole global co-ordinator, along with Al Rayan Investment Company, Citibank, Doha Bank, Dubai Islamic Bank, Dukhan Bank, Emirates NBD Capital, HSBC, Lesha Bank, Mashreq, QNB Capital, and Warba Bank as joint lead managers and book runners.

Commenting on the issuance, QIIB Chief Executive Officer Dr Abdulbasit Ahmed al-Shaibei stated, "This is our second sukuk issuance this year, which has attracted strong demand from investors worldwide. The favourable pricing of these sukuk reinforces the global appeal and strength of the Qatari economy, which continues to enjoy exceptional investment attractiveness. Qatar’s strong and attractive economy plays a pivotal role in supporting the country’s institutions, especially its banks.”

He noted, “The significant demand for our sukuk reflects the financial strength and credit worthiness of QIIB, which is backed by the assets quality, strong liquidity, robust capitlisation, and high efficiency in the banking sector. Reports from international credit rating agencies confirm our strong profitability and stable outlook, ensuring our long-term growth prospects.”

The CEO explained, "Issuing the sukuk within the Tier 1 capital framework is a strategic move to bolster QIIB’s financial strength and meet our growth ambitions. This also enhances our presence in international markets and strengthens relationships with global investors and financial institutions."

He highlighted, "Earlier this year, QIIB issued a $500mn sustainable sukuk, listed on the London Stock Exchange. As Qatar’s first institution to issue sustainable sukuk, we received a phenomenal response from investors across the globe."

"This issuance underscores our commitment to sustainability and aligns with Qatar National Vision 2030, as well as the Third Financial Sector Strategy launched by the Qatar Central Bank, which prioritises environmental, social, and governance (ESG) principles. Our efforts contribute to the continued development and prosperity of the financial sector from multiple dimensions."

The CEO expressed confidence in QIIB’s ability to strengthen its financial standing and achieve growth in line with the interim and strategic plans approved by the Bank’s Board of Directors.

He also extended his gratitude to the banks that have been involved in arranging the latest sukuk issuance, which was a success by all standards.