QIB Completes Successful Issuance of 5 Year
USD 750 Million Sukuk
March 20, 2019
Qatar Islamic Bank (QIB), rated
A1/A-/A (all stable) by Moody’s/Standard & Poor's/Fitch,
successfully priced a US$ 750mn 5-year Sukuk at par with a
profit rate of 3.982% equivalent to a credit spread of 150 base
points over US$ Mid-Swaps.
The Sukuk was met with strong
investor demand as evidenced by the large order book which
closed at US$ 3.1 billion, representing an oversubscription rate
of 4.1 times. In terms of geography, 46% of the Sukuk was
allocated to Asian investors, followed by Middle Eastern
accounts 23%, Europe 21% and US/Other at 10%. In total,
non-Middle Eastern investors were allocated 77% of the Sukuk,
which is a remarkable outcome and one of the highest
international allocations achieved by any bank from the region.
60% of the investors were fund managers, 26% were banks and
private banks and 14% were insurance companies and agencies.
More than 140 investors from 28 countries spanning Europe, Asia,
USA and the Middle East participated in the Sukuk.
The success of this transaction came
on the back of a comprehensive marketing strategy aimed at
updating international investors with QIB's robust credit
fundamentals and the strength of Qatar's economy. Senior members
of QIB's management team met with institutional investors in
London, Hong Kong and Singapore over a period of three days
prior to pricing the Sukuk. The meetings were well received by
investors who took great comfort from the bank's credit profile
and performance over the years.
Mr. Bassel Gamal, QIB Group CEO,
commented “This transaction cements the ability of Qatari banks
to raise funding from a diverse set of international investors.
QIB is proud of the Sukuk’s results and we are very pleased with
the success of the transaction, which showcases the confidence
investors have in our bank, and more importantly in the State of
Qatar.”
Barclays, Barwa Bank, Boubyan Bank,
Crédit Agricole CIB, QInvest, QNB Capital and Standard Chartered
Bank acted as Joint Lead Managers and Bookrunners on this
transaction, with Deutsche Bank as a Co-Manager.
The US$ 750 million Sukuk was a
drawdown under QIB's existing US$ 4 billion program and the
Trust Certificates will be listed on the Irish Stock Exchange
(Euronext Dublin).
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