Qatar International Islamic Bank (QIIB) has tightened the pricing on its latest $500 million five-year sukuk after investors piled in with orders nearing four times the issue size.
The sukuk, structured as a senior unsecured Eurobond, carries a 4.50% coupon and was reoffered at 99.787, translating to a yield of 4.548%. Initial pricing was pitched around 125 basis points over U.S. Treasuries, but strong demand allowed the bank to narrow that spread to 85 basis points.
By the time the order book closed, bids had reached $1.85 billion—excluding interest from joint lead managers—underscoring sustained appetite for Gulf Islamic debt despite shifting global yield conditions.
Issued under QIIB’s $2 billion Trust Certificate Issuance Programme, the sukuk holds an ‘A’ rating from Fitch and will be listed on the London Stock Exchange’s International Securities Market.
A consortium of heavyweight arrangers—Al Rayan Investment, Bank ABC, Citi, Dubai Islamic Bank, Dukhan Bank, Emirates NBD Capital, HSBC, Mashreq, QNB Capital, and Standard Chartered—served as joint lead managers and bookrunners.
Backed by solid ratings of A2 from Moody’s and A from Fitch, QIIB’s move reflects the continuing confidence in Qatar’s financial sector and the growing sophistication of its Islamic finance market.
