Qatar Islamic Bank (QIB) has issued a $750mn sukuk, which however saw 2.3 times oversubscription, indicating robust demand from investors in Europe, Asia and the Middle East.
The sukuk, with tenor of five years, carried a profit rate of 4.803%, equivalent to a credit spread of 80 basis points over the US treasury rate, which was well inside QIB’s fair value and lower than secondary market spreads of all Qatari banks, reflecting the positive perception of international investors around the bank's credit quality, according to a statement.
Moreover, QIB’s profit rate was the lowest achieved by a GCC (Gulf Co-operation Council) bank for a senior unsecured five-year issuance in 2025.
"QIB is proud of another successful transaction in the international capital markets, where it has built a reputable name and large investor base from around the globe. The strong demand for our sukuk underscores the faith investors have in robust economic position of Qatar’s and strong financial fundamentals of QIB,” said Bassel Gamal, QIB’s Group chief executive officer.
The order book peaked at $1.7bn, representing an oversubscription rate of 2.3 times, one of the highest levels of demand seen for sukuk issuances.
The robust order book enabled QIB to confidently tighten the pricing by 35-40 basis points from initial price thoughts in one iteration to 80 basis points over the US treasury rate. Investor diversity was broad and comprised of banks, private banks, fund managers and agencies from all over the world.
Acting as joint lead managers and book runners were Abu Dhabi Islamic Bank, Bank ABC, Dubai Islamic Bank, Dukhan Bank, Emirates NBD Capital, HSBC, KFH Capital, Mashreq, QNB Capital, QInvest, SMBC, Standard Chartered Bank and the Islamic Corporation for the Development of the Private Sector.
QIB’s profit rate was the lowest achieved by a GCC bank for a senior unsecured five-year issuance in 2025.
