#Qatar Islamic Bank returns to global debt market; $500mln sukuk oversubscribed 6.6 times

Qatar Islamic Bank returns to global debt market; $500mln sukuk oversubscribed 6.6 times

Qatar Islamic Bank (QIB), the largest Islamic lender in Qatar, has returned to global capital markets with a $500mn sukuk, which was oversubscribed 6.6 times, indicating high demand from investors in Europe, Asia and the Middle East.

The bank's five-year sukuk, which carries a profit rate of 5.581%, equivalent to 115 basis points (bps) over the benchmark US treasury rate, shows international investors' confidence in the bank and in Qatar's economy.

QIB effectively reopened the international market for other Qatari entities, being the first bank issuer from Qatar to access the dollar market via a public issue since July 2021.

The transaction was met with strong demand, culminating an orderbook size in excess of $3.3bn from more than 160 regional and international investors.

The oversubscription rate represents the highest orderbook for a senior sukuk since June 2020.

The strong investor appetite for the sukuk allowed QIB to tighten pricing to 115bps over the benchmark rate from initial price thoughts of 155bps, a move of 40bps, which is rarely seen in the market and is reflective of the strength and quality of the orderbook, said a spokesman of QIB.