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Qatar International Islamic Bank (QIIB) is going for a $250 million tap of an existing sukuk, or Islamic bond, of $500 million issued in January and maturing in January 2029.
The final price guidance for the fresh sale is at 100 basis points over US Treasuries, with annual yield of 5.138%, fixed income news service IFR reported.
QIIB issued the $500 million sustainable ‘Oryx’ sukuk for a period of five years earlier this year as part of the bank's sukuk programme with a total value of $2 billion. The issuance was priced at a spread of 120 basis points above the five-year US Treasury rate, with a final yield of 5.247% annually.
For the new tap, which takes the total to $750 million, the pricing has been adjusted to reflect current market conditions.
An amount at least equal to the net proceeds will be used to finance/refinance eligible sustainable projects in line with QIIB’s Sustainable Finance Framework.
The Qatari Islamic lender has mandated Standard Chartered Bank as sole sustainability structurer, sole bookrunner, and billing & delivery bank.
(Writing by Brinda Darasha; editing by Seban Scaria)
