London Stock Exchange lists QIIB’s $300m Sukuk

Doha: London Stock Exchange listed QIIB’s Sukuk worth $300m that the bank successfully issued last week as Additional Tier l Perpetual capital instrument, in the presence of Sheikh Dr. Khalid bin Thani Abdullah Al Thani, QIIB Chairman and Managing Director; Dr. Abdulbasit Ahmad Al Shaibei, QIIB CEO, and Ajay Sharma, Ambassador of the United Kingdom to Qatar.

The ceremony was also attended by Hossam Khattab, QIIB Chief Financial Officer; Mohamed Barhouma, Chief Operating Officer; Omar Al Meer, Chief of Business Development, and Mohamed Sheikha, Treasury and Investment Manager.

On Wednesday last, QIIB successfully issued Sukuk worth $300m. This issuance witnessed strong appetite from investors and was oversubscribed about nine (9) times, with a book order that exceeds $2.6bn.

The issue was priced at fixed rate of 4.875 percent p.a, and this is the lowest pricing ever of this AT1 from the GCC.

During the bell ringing ceremony marking the listing of QIIB Sukuk on the London Stock Exchange, Sheikh Dr. Khalid bin Thani said: “We are delighted to be here for the second time in less than a year to list the bank’s Sukuk. The success we achieved last time and are achieving now is due to the Qatari economy’s prominent position and the global confidence therein”.

He said: “In fact, this trust didn’t emanate from void, as the Qatari economy achieved outstanding results in various sectors, thus attracting investors from different countries. As a bank, we feel responsible to keep up with the country’s economic momentum and therefore, our presence today falls within this framework.”

Sheikh Dr. Khalid noted: “The high demand for QIIB Sukuk goes beyond the classical economic meaning – despite the importance of this aspect – because it highlights the success of the State of Qatar and its institutions in overcoming the challenges of the siege and attempts to impact its economy, which is appreciated by most experts and economists.”

He pointed out: “QIIB will remain in the investment scene and will enhance the trust it reaped during its presence for more than quarter of a century in the Islamic banking market, expressing his confidence that QIIB’s position will remain strong locally and internationally, thanks to the great efforts exerted and the strong support provided by the Qatari economy.”

QIIB Chief Executive Officer Dr. Abdulbasit Ahmad Al Shaibei said: “The listing of our new Sukuk on the London Stock Exchange is a great success for us on top of many other successes that will undoubtedly help us strengthen our financial position and improve our growth figures.

In addition to the high demand for QIIB Sukuk by as many as 122 institutions from some 22 countries, where the order book was oversubscribed more than nine times, the competitive pricing that we secured is highly significant and primarily due to the strength of the Qatari economy and our high credit rating.”

Dr. Al-Shaibei affirmed “QIIB’s decision to list its Sukuk on London Stock Exchange was based on the fact that London will continue to play its prestigious global role, regardless of the Brexit outcome, and that London is considered one of the most important international markets for Islamic banking instruments”.

He said: “The Sukuk issued by the Bank are important capital tools for us as they balance between their flexibility and our desire to be present in the international Islamic Financial Markets in line with our strategic plans that focus on strengthening the Bank’s financial position and forging more partnerships at the regional and international levels.”

The QIIB Chief Executive Officer thanked the banks that arranged the issuance, namely QNB Capital, Barwa Bank, Kuwait International Bank, QInvest, Al Khalij Commercial Bank and Standard Chartered Bank, which he said, made great efforts to guarantee the success of our new issuance.

Source from: The Peninsula