- Qatar Islamic Bank's $750mn sukuk oversubscribes 2.3 times
Qatar Islamic Bank (QIB) has successfully returned to the international sukuk market with a $750mn issue, which was oversubscribed 2.3 times, indicating the strength in the Shariah-principled lender’s "resilient” business model and global investors' confidence in the Qatari economy.
The bank issued senior unsecured sukuk with a five-year tenor at a profit rate of 4.402%, equivalent to 80 basis points over the US treasuries.
The final pricing came well inside QIB’s fair value, reflecting a 35 basis points tightening from initial price thoughts of 115 basis points area.
Notably, this marks the first sukuk from a Qatari financial institution in 2026 and the lowest profit rate achieved by a Gulf Cooperation Council bank on a 5-year senior sukuk in the last twelve months.
QIB held a series of investor calls with accounts across Europe, Asia and the Middle East. Demand accelerated rapidly, with the order book reaching a peak of $1.7bn, representing 2.3 times oversubscription and ranking among the strongest recent sukuk order books.
The strength and quality of investor interest enabled QIB to tighten pricing decisively in a single iteration, finalising at 80 basis points over the US treasury rate.
The issuance attracted a well-diversified global investor base, comprising banks, private banks, asset managers and official institutions from across the international markets.
"The successful issuance of our $750mn sukuk underscores the depth of global investor confidence in Qatar’s strong and stable economy, its investor friendly policies along with QIB’s strategy, financial strength and disciplined execution," said Bassel Gamal, QIB’s Group chief executive officer.
The strong demand and pricing outcome reflect the market’s recognition of its resilient business model and consistent performance across cycles, he said.
"This transaction further diversifies our funding base, enhances our liquidity profile and positions QIB to continue supporting Qatar’s economic growth while delivering sustainable long-term value to our stakeholders," he added.
The sukuk will be rated 'A' by Fitch and will be listed on the London Stock Exchange’s International Securities Markets. The joint lead managers and joint book-runners were Abu Dhabi Islamic Bank, Bank ABC, Citi, Dubai Islamic Bank, Dukhan Bank, Emirates NBD Capital, KFH Capital, Mashreq, MUFG, Q Invest, QNB Capital, Standard Chartered Bank, The Islamic Corporation for the Development of the Private Sector and Warba Bank.