QR1bn sukuk supports QIIB’s ‘interim and strategic’ plans

QIIB has said its QR1bn sukuk issuance supports its equity and meets Basel 3 requirements and enhances its plans for expansion.QIIB yesterday announced the issuance of a QR1bn sukuk within the first tranche of the bank’s capital boost through a local issue.This is the first issue by the leading Islamic bank within the capital boosting tools compatible with Basel 3, which supports QIIB’s interim and strategic plans.“Issuing QR1bn worth of instruments supports the bank’s equity and meets Basel 3 requirements and enhances its plans for expansion, which QIIB announced previously or are currently under study, within the regulatory and supervisory controls,” a bank statement said.With the new issue, based on the QIIB’s balance sheet as on June 30, the bank’s capital adequacy will increase to about 20%, well above the Qatar Central Bank requirements in this regard. “This reflects the strength and stability of QIIB’s financial position as well as liquidity. The minimum limit set by Qatar Central Bank is at 12.5%,” the bank said.QIIB enjoys a prominent financial position and the international credit rating agency Moody’s has affirmed the Bank’s rating this year at ‘A2’ with a stable outlook. Fitch Ratings has affirmed the Bank’s rating at ‘A+’ with a stable outlook and Capital Intelligence affirmed the Bank’s financial strength rating at ‘A-‘ with a positive outlook.