(MENAFN - The Peninsula) Qatar Islamic Bank (QIB) rated A- and A by S&P and Fitch, all stable outlook, has successfully priced a 750m 5-year sukuk issued at par with a 2.5 percent semi-annual profit rate under its 1.5bn Trust Certificate Issuance Programme. 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 October 2, 2012, with the release of official price guidance at MS 190bps area. This ensured good momentum in the bookbuilding process and on October 3 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 percent for Middle East, 30 percent for Asia, 18 percent for UK/Europe and 4 percent US Offshore. The orderbook was allocated 42 percent to banks, followed by 39 percent to fund managers, 10 percent to supranationals and agencies, 6 percent to private banks and 3 percent to insurance and pension funds. The Trust Certificates will be listed on the Irish Stock Exchange.