* QIIB is proud to have achieved growth that reflects its engagement in the Qatari economy, which has proven to be firmly based on strength and durability, says bank chairman and managing director Sheikh Dr Khalid bin Thani bin Abdullah al-Thani
QIIB shareholders have approved the board of directors’ recommendation to issue up to $1bn Tier 2 Sukuk after obtaining the necessary approvals from the supervisory authorities concerned.
Following its virtual ordinary general assembly on Wednesday, QIIB said the conditions and size of the sukuk issuance will be subject to a study of the bank’s needs and market conditions.
The ordinary general assembly endorsed the board of directors' recommendation to extend last year's general assembly approval of the $2bn sukuk programme (already approved at the 2019 AGM) and delegate the BoD to decide the size of each issuance, terms and conditions and issuance currency.
This would be done after getting all necessary approvals from supervisory authorities. QIIB said sukuk should not exceed the bank’s capital and reserves.
The QIIB shareholders also gave nod to the board of directors’ recommendation to extend the last-year general assembly’s approval to issue Additional Tier1 Sukuk (non-convertible) into ordinary shares up to QR3bn, which should not exceed the bank’s capital and reserves.
They also delegated the board of directors to decide the size of each issuance, terms and conditions and issuance currency after getting all necessary approvals from the supervisory authorities concerned.
The ordinary general assembly discussed and approved the board's recommendation to distribute 32.5% of the bank capital as cash dividends (QR0.325 per share).
Addressing shareholders, QIIB chairman and managing director Sheikh Dr Khalid bin Thani bin Abdullah al-Thani said, “2020 was a new test for the strength, durability and resilience of the Qatari economy, in the face of the difficulties encountered by all countries. Thanks to God Almighty and the wise strategy pursued by the Qatari Government and the supervisory authorities to support the Qatari economy in various areas, under the directives and patronage of His Highness Sheikh Tamim bin Hamad al-Thani, the beloved Amir, QIIB was able to triumph over all factors and circumstances.
“In particular, the recent crisis with the spread of Covid-19, concessional financing was granted to those affected by the crisis and the payment of premiums was postponed. Thus contributing to the stabilisation of the national economy and protecting national companies, enterprises, industrialists and investors from potential implications on their activities and investments.
“The Qatari economy has continued to make significant leaps in achieving self-sufficiency in the majority of production and service sectors. At QIIB we are proud to have achieved growth that reflects our engagement in the Qatari economy, which has proven to be firmly based on strength and durability.”
Sheikh Dr Khalid said, “QIIB has continued its policy of focusing on the domestic market, particularly in view of the significant opportunities that contribute to the development process and the achievement of the objectives of Qatar's National Vision 2030, some of which have been achieved and others on the way to realisation. We are honoured to be part of and actively contributing to the achievement of some of the objectives of this vision.”
In addition to the key performance indicators achieved by QIIB, global credit rating agencies have strongly recognised the bank’s financial position with Moody's and Fitch Ratings affirming the bank’s rating at ‘A2’ and ‘A’ respectively with a stable outlook.
This is due to the high quality of the banks assets and the strength of profitability indicators compared to our local counterparts, Sheikh Dr Khalid noted.