London Stock Exchange lists Qatar International Islamic Bank (QIIB) $500 million sukuk

LONDON: London Stock Exchange has listed Qatar International Islamic Bank (QIIB) $500 million sukuk in the presence of QIIB Chairman and Managing Director Sheikh Dr Khalid bin Thani al-Thani, Chief Executive Officer Dr Abdulbasit Ahmad al-Shaibei, Qatar Ambassador to the UK Yousef bin Ali al-Khater, UK’s Ambassador to Qatar Ajay Sharma and Her Majesty’s Trade Commissioner (HTMC) Simon Penney.

The highly successful offering was oversubscribed nearly seven times with investors bidding for more than seven 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, Australia and other countries.

During the announcement of the bank’s sukuk listing on London Stock Exchange, Qatar International Islamic Bank (QIIB) Chairman and Managing Director Sheikh Dr Khaled bin Thani Bin Abdullah al-Thani said, “We are very pleased with the success of the issuance and the listing. We are proud that confidence in the Qatari economy reached record levels among various categories of investors around the world”.

He added: “During the past period, the Qatari economy was able to achieve exceptional results. We are honoured to be part of its success story and the way it has overcome all  obstacles and challenges, which was highly admired at the regional and international levels.”

“We noticed during our promotional roadshow, prior to the issuance of the sukuk and during the issuance process that the embargo on Qatar failed miserably and bounced back on those who had imposed it. The high solvency of the Qatari economy and the strong financial position of the Qatari banks are very well appreciated and respected internationally, which helped us successfully issue the sukuk and price it very competitively”. QIIB Chairman and Managing Director added .

QIIB Chief Executive Officer Dr Abdulbasit Ahmad al-Shaibei said, “the QIIB sukuk was met with strong demand from discerning investors after being priced at competitive rates, supported by the credit ratings assigned to it by leading international rating agencies such as Moody’s (A2).

The CEO noted that QIIB’s decision to list its sukuk on the London Stock Exchange was a strategic one, borne out of its confidence that London will remain a prominent international financial centre regardless of the Brexit outcome. It is also an important centre for Islamic banking instruments and will remain so during the foreseeable period”.

He said, “Sukuks, as flexible and unique investment instruments, can provide issuers such as QIIB many advantages, especially in the global financial market. They can help us to open up to investors outside the Middle East, especially those who have never dealt with the Qatari market”.

QIIB Chief Executive Officer thanked the banks that have arranged the issuance: QNB Capital, Al-Khalij Commercial Bank (Al Khaliji), Barwa Bank, Boubyan Bank, Barclays Bank, MayBank and Standard Chartered Bank.

He said these banks made great efforts to help QIIB successfully issue the sukuk and make it one of the best Islamic sukuk issuances in the past period.[the_ad id=”31605″]

Print Friendly, PDF & Email
Bookmark the permalink.

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.