Qatar Islamic Bank (QIB) has issued a $750 million five-year Shariah-compliant bond or Sukuk, with a profit rate of 4.485% and a tenor of 5 years.
The profit rate was equivalent to a credit spread of 100 basis points (bps) over the US treasury rate, which was 15 basis points inside QIB’s fair value and lower than the secondary market spreads of all Qatari banks.
QIB’s profit rate was the lowest achieved by a GCC bank for a senior unsecured 5-year issuance in 2024.
The order book was oversubscribed three times, attracting $2.2 billion in demand. The robust order book enabled QIB to tighten the pricing of the notes by 30 bps.
“QIB is pleased with its successful return to the international capital markets. Our deal showcases the large and diversified investor following that Qatar enjoys and highlights the confidence placed by international and regional investors in the bank,” said Bassel Gamal, the Group CEO of QIB.
There were 11 joint lead managers and joint bookrunners, including Bank ABC, Emirates NBD Capital, HSBC, Mashreq, Mizuho, QNB Capital, Q Invest, and Standard Chartered Bank.
