The transaction represents QIB’s return to the public debt capital markets, following its $750mn sukuk issuance in October 2015. Citi, Emirates NBD Capital, HSBC, Noor Bank, QInvest and Standard Chartered Bank acted as joint bookrunners and joint lead managers on the transaction.
Despite the busy issuance window, with a number of emerging market issuers pricing transactions on the same day and some of the GCC names on the road marketing potential transactions, QIB was able to take advantage of the resilience of the sukuk market and pent-up demand for quality issuers to successfully price a transaction.
QIB was able to efficiently price the transaction, with its 2020 sukuk seen trading in the context of 120 bps over mid-swaps on the day; which highlights the offering was priced with a negative new issue premium. In addition, the order book was 2.93-times oversubscribed and achieved a balanced distribution profile.
The highly successful offering demonstrates the confidence which international investors place in Qatar, its Islamic banking market and QIB.