DOHA: Qatar International Islamic Bank (QIIB) has announced the successful issuance of $500 million Sukuk under the Bank's Sukuk programme of $dollars 2.0 billion. The offering was oversubscribed by six times with investors bidding for more than six times the amount offered and reflects the positive outlook of the Qatari economy and the strength of its financial position. The offering was oversubscribed by investors, mostly from outside the Middle East, with a total of $3.3 billion. The issue was priced at a spread of 175 basis points over the 5-year mid swaps carrying fixed coupon of 4.264 percent per annum. The participation included investors from around the world with 30 percent from the MEMA and 70 percent to other investors from Europe, Asia and other countries. The issue was arranged and offered through a syndicate comprising of QNB Capital, Al-Khalij Commercial Bank (Al Khaliji), Barwa Bank, Boubyan Bank, Barclays Bank, MayBank and Standard Chartered Bank. "The Bank's success in issuing sukuk and securing good pricing is primarily due to the strength and high rating of the Qatari economy, which is considered one of the highest credit ratings in the entire region," said Dr. Abdulbasit Ahmad al-Shaibei, Qatar International Islamic Bank (QIIB) Chief Executive Officer. "All indicators and market researches place the Qatari economy at the forefront of the economies in the region. The Qatari banking sector enjoys the confidence of investors because it provides a very high solvency and is in a strong financial position. This is in addition to the strength of the Qatari economy, thanks to the prudent policies being pursued by the Qatari financial sector,” he said. “The strong appetite of investors from MENA, Asia and Europe, some of whom are dealing with sukuks for the very first time, reflects the strong financial position of Qatar International Islamic Bank (QIIB) and the continued strong support and confidence of both international and local investors in the Bank’s strong fundamentals and its ability to design and launch high quality products at competitive prices.” "Despite the abundance of liquidity in the Qatari banking sector, sukuk issuance is vital because it enhances our presence in the international financial markets and opens new horizons with investors outside the region, especially those who do not deal with the Qatari market," he said. “The launch of the QIIB sukuk and the huge turnout of investors we have seen is further evidence of the failure of attempts being made to stifle the Qatari economy through an unjustified blockade. It clearly underscores the resilience of the Qatari economy,” Dr Al-Shaibei emphasised. The Qatari economy also enjoys tremendous confidence of the global financial system and various prestigious global institutions continue to see promising growth opportunities and a stable economy in Qatar. It is worth noting that the Sukuk issuance is the second such experience for QIIB, as the bank succeeded in issuing sukuk worth $700 million in 2012. QIIB achieved a net profit of QR 882.1 million during the year 2018, a growth of 6.0 percent compared to 2017, with earnings per share standing at QR 5.46 in 2018. At the end of 2018, the Bank's total assets amounted to QR 50.3 billion compared to QR 46.6 billion in end-2017, with a growth rate of 7.8 percent. QIIB was established in 1990 as the second Islamic bank in the State of Qatar and is currently the third largest Islamic bank in terms of assets and market capitalisation. QIIB began its operations in 1991 and is listed on the Qatar Stock Exchange. The Bank has diversified regional and international partnerships.