Qatar Islamic Bank, “The Bank”, announced its success in issuing bonds worth $ 750 million, with a profit rate of 4.803 percent and a period of 5 years.
The bank said, in a statement published on the Qatar Stock Exchange website today, that the profit rate is equivalent to a profit margin of 80 basis points above the price of American treasury bonds, which is a very close margin of the fair value of the bank and less than the price range in the secondary market for all Qatari banks, which reflects the confidence of international investors in the bank’s credit quality.
The statement added that the profit rate for the bank is the lowest in which a Gulf bank is issued to issue instruments that are not guaranteed with a large capital for 5 years in 2025.
The bank announced its intention to issue sukuk yesterday morning “Monday”, and made phone calls throughout the day with investors from Europe, Asia and the Middle East, and the initial reactions from the investors were encouraging, which allowed the bank to open the request record yesterday morning “Tuesday”, and the request record soon increased to reach its peak at $ 1.7 billion, which represents a rate of coverage of a surplus of 2.3 times, which is one of the highest levels of demand Sukuk versions.
The statement pointed out that the strong request record enabled the bank to pressure the price of the sukuk with a confidence of 35 – 40 basis points of estimates of the initial price in one session to 80 basis points above the price of American treasury bonds, and the diversity of investors was wide, as it included banks, investment banks, fund managers and agencies from all over the world.
Abu Dhabi Islamic Bank, ABC, Dubai Islamic Bank, Dukhan Bank, NBD Capital, HSBC, KFH Capital, Al Mashreq, QNB Capital, Kyoing, EBC, SMBC, Standard Chartard, and Islamic Sector Development Corporation, as major managers and a joint registry.
Basil Jamal, CEO of Qatar Islamic Bank Group, said: The strong demand for the bank’s instruments confirms the confidence of investors in the strong economic situation of the State of Qatar and the strong financial foundations of the bank.