Doha: Qatar Islamic Bank (QIB) has successfully issued a $750 million senior unsecured Sukuk with a five-year tenor at a profit rate of 4.402 percent, equivalent to 80 basis points over US Treasuries. The transaction reflects strong investor appetite and confidence in the bank’s solid credit profile.
QIB, rated A1 by Moody’s and A by Fitch Ratings, secured final pricing 35 basis points tighter than the initial price thoughts in the 115 basis points area. The issuance marks the first Sukuk by a Qatari financial institution in 2026 and represents the lowest profit rate achieved by a GCC bank on a five-year senior Sukuk in the past twelve months.
Following the announcement of the transaction, QIB conducted a series of investor calls with institutional accounts across Europe, Asia and the Middle East. Encouraged by strong initial feedback, the bank opened the order books the following morning at the start of GCC trading hours. Demand accelerated rapidly, with the order book reaching a peak of $1.7 billion—approximately 2.3 times oversubscribed—ranking among the strongest Sukuk order books in recent months.
The strength and quality of investor interest enabled QIB to tighten pricing decisively in a single revision, finalizing the spread at 80 basis points over the US Treasury rate. The issuance attracted a well-diversified international investor base comprising banks, private banks, asset managers and official institutions from global markets.
Commenting on the transaction, QIB Group Chief Executive Officer Bassel Gamal said the successful issuance underscores the depth of global investor confidence in Qatar’s stable economy, its investor-friendly policies and QIB’s strong financial position. He added that the transaction further diversifies the bank’s funding base, enhances its liquidity profile and positions QIB to continue supporting Qatar’s economic growth while delivering sustainable long-term value to stakeholders.
The Sukuk is expected to be rated A by Fitch and will be listed on the International Securities Market of the London Stock Exchange. The joint lead managers and bookrunners for the deal included 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.