IIFM endorses USD700 million Qatar Global Sukuk

The endorsement comes in line with the IIFM's aim to develop the Islamic capital market and to ensure the harmonization and standardization of Islamic financial products so as to achieve global appeal and acceptance.

Closed at US$700 million, the issue is the largest sovereign global sukuk ever structured under Ijarah (leasing) after Bahrain and Malaysia Ijarah sukuk. It is also the first Global Islamic bond (sukuk) offering by Qatar, a country highly supportive of the Islamic banking industry.

The endorsement is the first by the IIFM for a non-member and it will, no doubt, have a great impact on IIFM's vision to be the premier international Islamic institution that promotes active trading of Islamic capital market instruments.

The Qatar Global Sukuk will be listed at Luxembourg Stock Exchange and at Malaysia's Labuan International Financial Exchange. This is another sign of the growing cooperation among Muslim countries of the Far East and Middle East, which is also in line with the IIFM objective of enhancing cooperation among Muslim countries.

The certificate holders will be entitled to receive periodic profit distribution.

Hong Kong & Shanghai Banking Corporation (HSBC) and Qatar International Islamic bank act as the lead managers and the market maker for the issue. Commerce International Merchant Bankers Bhd-Malaysia (CIMB) was appointed as the co-manager for the Far East region. The issue is rated A+ by S&P. the seven-year Islamic bonds will mature on 2010 and can be redeemed after five years.