Qatar Islamic Bank completes successful issuance of $750m sukuk

Deutsche Bank, HSBC, QInvest and Standard Chartered Bank acted as joint lead managers and joint bookrunners, with Qatar International Islamic Bank and Sharjah Islamic Bank as Co-Managers on the transaction.

Bookbuilding began on Tuesday, 2 October with the release of official price guidance at MS + 190bps area. This ensured good momentum in the bookbuilding process and on Wednesday 3 October London morning, a revised price guidance of MS + 175-180bps was released to investors and the deal was finally priced at the tight end of the range at MS + 175bps. The transaction was priced efficiently against QIB's October 2015's. This financing represents the lowest profit rate ever achieved by any GCC financial institution.

The final book reached $6bn, representing 8 times the subscription of the desired issuance size, an extremely strong performance given the large supply of Middle Eastern Sukuk issuances this year. The size of the book represents both the increased liquidity in the Islamic investor base and also the growing appetite for Sukuk among conventional accounts.

The success of QIB's transaction was underpinned by a comprehensive set of investor meetings covering key centers in Asia, Middle East and Europe.

QIB's strong investment ratings, brand name and robust financial position, made a compelling story for investors.

The issue saw strong participation from Asia and the MENA region. In terms of allocation, the geographic split stood at 48% for Middle East, 30% for Asia, 18% for UK/Europe and 4% US Offshore. The orderbook was allocated 42% to banks, followed by 39% to fund managers, 10% to supranationals and agencies, 6% to private banks and 3% to insurance and pension funds.

The Trust Certificates will be listed on the Irish Stock Exchange