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Qatar Islamic Bank Successfully Prices Us$ 750 Million
3.251% 5-Year Sukuk
May 17, 2017
Qatar Islamic Bank (“QIB”), priced a highly successful USD 750
million 5-year RegS only Sukuk offering. The Sukuk was issued at
par with an annual profit rate of 3.251% (payable
semi-annually), representing a spread of 135bps over 5-year
mid-swaps. The transaction represents QIB’s return to the public
debt capital markets, following its USD 750mn Sukuk issuance in
October 2015. Citi, Emirates NBD Capital, HSBC, Noor Bank,
QInvest and Standard Chartered Bank acted as joint book runners
and joint lead managers on the transaction.
Despite the busy issuance window, with a number of emerging
market issuers pricing transactions on the same day and some of
the GCC names on the road marketing potential transactions, QIB
was able to take advantage of the resilience of the Sukuk market
and the strong pent-up demand for quality issuers to
successfully price a transaction. QIB was able to efficiently
price the transaction, with its 2020 Sukuk seen trading in the
context of 120bps over mid-swaps on the day; which highlights
that the offering was priced with a negative new issue premium.
In addition, the order book was 2.93x oversubscribed and
achieved a balanced distribution profile.
"We are very pleased to see exceptional interest in our return
to the public international debt capital markets. The highly
successful offering demonstrates the confidence which
international investors place in Qatar, its Islamic banking
market and Qatar Islamic Bank, in specific. The transaction also
further reasserts QIB’s status as a highly sophisticated Islamic
issuer, having successfully accessed the debt capital markets
for a number of landmark transactions, both in the public and
private markets. The success of the Sukuk, which is attested to
by the robust and healthy order book which closed at circa US$
2.2 billion, highlights the continued strong support and
confidence of both international and local investors in Qatar
Islamic Bank’s strong underlying and unique credit
fundamentals.”
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