QIIB Successfully Issues $500Mn Sukuk; Transaction Attracts Strong Global Demand

QIIB, rated ‘A2’ by Moody’s with a stable outlook and ‘A’ by Fitch Ratings with a stable outlook, announced the successful issuance of a $500mn senior unsecured Sukuk with a five-year maturity, issued under 'Regulation S' as part of the bank’s existing $2bn Trust Certificate Issuance Programme.

The transaction attracted strong demand from regional and international investors, with total orders exceeding $2bn — more than four times the issue size, QIIB said Saturday.

This remarkable demand underscores investor confidence in QIIB and reflects the continued strength and resilience of Qatar’s economy, which continues to offer attractive investment opportunities across diverse sectors.

The sukuk was priced at a profit rate of 85 basis points above the five-year US Treasury rate, with a final yield of 4.548% per year — one of the most competitive pricing levels achieved by Islamic financial institutions for similar issuances. Notably, allocations to investors outside the GCC exceeded 49% of the transaction.

The issuance was arranged and marketed by a syndicate of leading global and regional banks acting as Joint Lead Managers and Joint Bookrunners, including: Al Rayan Investment LLC, ABC Bank, Citi, Dubai Islamic Bank, Dukhan Bank, Emirates NBD Capital, HSBC, Mashreq, QNB Capital, Standard Chartered Bank, ICBC, and The First Investor.

Ahead of the issuance, QIIB conducted a global investor call, followed by a series of virtual meetings and in-person investor meetings in London recently.

Commenting on the successful issuance, QIIB Chief Executive Officer, Dr Abdulbasit Ahmad al-Shaibei, stated:

“The successful completion of this sukuk issuance represents a significant milestone that reaffirms QIIB’s strong financial position and the continued confidence of global investors in both the bank and the Qatari economy, which remains robust and highly attractive to investors.

 The issuance received strong demand from a wide range of investors across different regions, reflecting QIIB’s standing as a leading Islamic financial institution.”

He noted, “The competitive pricing and strong order book demonstrate QIIB’s sustained appeal in international capital markets, supported by our solid credit ratings, high operational efficiency, and prudent risk management. This issuance further contributes to diversifying the bank’s funding base and supports the growth plans approved by our Board of Directors.”

Al-Shaibei also highlighted QIIB’s consistent track record in the sukuk market, noting: “QIIB has a solid and proven history in sukuk issuances. We previously issued Additional Tier 1 Sukuk and other sukuk that were significantly oversubscribed by investors worldwide. 

We were also the first Qatari institution to issue a 'Sustainable Sukuk', which attracted exceptional interest from sustainability-focused funds — enhancing our global profile and diversifying our investor base.”

He concluded: “We will continue to strengthen the bank’s portfolio and expand our presence in international capital markets, in line with QIIB’s strategic direction and Qatar National Vision 2030.”