The Islamic bank issued Islamic bonds the second time this year.
A total of $750 million Islamic bonds were issued for five years at an annual profit rate of 1.95 by the Qatar Islamic Bank (QIB), according to a report by the Qatar News Agency [QNA] on Wednesday.
The issuance of the Islamic bond, or sukuk, was implemented under QIB’s programme, which aims to issue bonds with a total value of $4 billion. The bonds were sold at 155 basis points (bps) over mid-swaps.
QIB has hired a group of banks to arrange an issuance of sukuk where the bank received over $2.2 billion in orders from 100 investors.
Out of the investors, 40% were banks, 31% asset managers, 8% private banks, and 21% were independent bodies.
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This is the bank’s second public issuance in 2020, after it issued the first Formosa sukuk earlier this year. The Taiwanese Formosa sukuk market was launched in 2019 to allow foreign borrowers to issue sukuk in currencies other than the New Taiwan dollar.
The issuance deal also comes as issuers within the Gulf seek to increase their finances that have been dented by cheap oil and the coronavirus crisis.
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