16 May 2018 - 8:28
Sukuk issuance: QIIB weighs market mood
By Satish Kanady I The Peninsula
DOHA: Qatar’s Islamic lender QIIB said yesterday it is waiting for the ‘right time’ to issue its $500m sukuk in the international market. The bank’s Chief Executive Officer Dr Abdulbasit Ahmed Al Shaibei (pictured) said that QIIB is currently weighing market condition before the issuance of the 5-year sukuk.
“We were recently in some of the Asian markets, just to test the market conditions. The feedback was very positive. But we decided to wait. Because the interest rate environment in the market at present is a bit confusing”, he told The Peninsula on the sidelines of an event held yesterday.
Currently, QIIB sees a huge flow of sukuks to the international market. Many conventional bonds are also coming to the market. “We do not want to go into the middle of this ‘mess’”. He said the potential investors are waiting for the right market moment. The bank is also getting advice regarding the timing of the issuance. “When the investors are ready for us, we will go to the market.”
In fact, Dr Al Shaibei said, QIIB is not in a hurry to hit the market. “As of now, we do not face any kind of liquidity issues. Our first sukuk was matured in October , means our presence is currently missing in the international debt market. We just want to make our presence in the market”, he said.
The lead arrangers of QIIB issuance are QNB, Standard Chartered and some Malaysian Banks. The tenor would be 5 year.
QIIB issued its first sukuk in 2012 for $700 and it was matured in October 2017. The bank’s $2bn Trust Certificate Issuance programme has already been approved by the the UK Financial Conduct Authority (the FCA) and is being admitted to the official list of the FCA and the London Stock Exchange. The Programme has been assigned a provisional rating of A2 by Moody’s Investors Service Cyprus .