Qatar International Islamic Bank's $500 Million 'Oryx' Sukuk Marks Success in Global Markets

Qatar International Islamic Bank's $500 Million 'Oryx' Sukuk Marks Success in Global Markets

By Staff Writer, 22 January 2024

Qatar International Islamic Bank (QIIB) has successfully issued a $500 million sustainable "Oryx" sukuk with a five-year maturity period as part of its overall sukuk program totaling $2 billion.

The sustainability-focused sukuk garnered substantial interest globally, with subscription requests surpassing $4 billion.

Priced at a spread of 120 basis points above the five-year US Treasury rate, the issuance achieved a final yield of 5.247% annually.

QIIB's Chief Executive Officer, Dr. Abdulbasit Ahmed Al Shaibei, highlighted the success of the sustainable sukuk, emphasizing its significance as the first issuance following the establishment of a dedicated framework for sustainable financing at the bank.

Earlier, Standard Chartered Bank was appointed as the Global Coordinator for the issuance, with support from Al Rayan Investment, Dukhan Bank, Emirates NBD Capital, KFH Capital, Mashreqbank, and Islamic Corporation for the Development of the Private Sector, as well as QNB Capital as Joint Bookrunners and Joint Lead Managers.

Dr. Al Shaibei expressed satisfaction with the sukuk's outcome and its competitive pricing, underscoring its alignment with the Qatar Central Bank's recently approved Third Financial Sector Strategy.

He emphasized the sukuk's success as a testament to QIIB's international confidence, credit ratings, and the robust Qatari economy, signaling the bank's commitment to sustainability, community service, and infrastructure development.

The CEO highlighted the issuance's role in achieving multiple objectives, including strengthening sustainability-linked financing, global market presence, and forging new partnerships with international investors.

Dr. Al Shaibei acknowledged QIIB's experience in sukuk issuance, citing previous successful issuances in 2012 and 2019, and expressed gratitude to the banks involved in facilitating the successful issuance.

Source: Zawya

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