Qatar International Islamic Bank contemplates massive market issuance (By IFN)

Qatar International Islamic Bank contemplates massive market issuance

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QATAR: Qatar International Islamic Bank (QIIB)’s board has requested authorization from its general assembly to issue a Sukuk program of up to US$2 billion, on the assumption that all the required approvals are satisfied. The bank’s board is also looking to add two more members after gaining approval to amend Article (21) of the bank’s articles of association during its extraordinary general assembly on the 17th February. In October last year, the bank had raised a US$700 million Sukuk via its special purpose entity, QIIB Sukuk, with a five-year maturity and listed on the Irish Stock Exchange. According to the bank’s 31st December 2012 financial statements, the Sukuk bears an annual profit rate of 2.688%, payable on a semi-annual basis, and the bank will repurchase the Sukuk assets at the exercise price of US$700 million upon maturity. The bank’s financial statements also stated that proceeds from Sukuk financing as at the end of last year totaled to QAR2.54 billion (US$697.63 million). The papers were rated ‘(P) A3’ with a stable outlook by Moody’s prior to their issuance. The bank is slated to hold its annual general meeting early next month, on the 3rd March.