Al Jaidah: The plan is part of our Strategy to diversify and develop Islamic Financing Tools for QIB and our clients.
QIB has mandated a large International Investment Bank and Rasameel Structured Finance Company a Kuwaiti based Islamic Investment Company specialized in securitisation issues regionally ( the " Advisors") to jointly advise on a securitization review of its assets with a view to doing a securitization issuance. Both Advisors will be involved in the Securitization exercise in support of QIB's growing real estate financing and investment activities locally and abroad.
Such a transaction will be the first in Qatar and the first securitization for a financial institution in the Middle East, and hence reaffirms QIB's role as a pioneer in Islamic Banking.
Furthermore, in its commitment to leadership, QIB is looking forward to bring this securitization to the market (subject to QCB and QIB Sharia' Board's approval), enhancing therefore the development of Islamic financing and the growth of the Sukuk market in the region.
QIB CEO Mr. Salah Al Jaidah stated that this comes under the bank's five-year plan to diversify its Islamic Financing Tools and to enhance QIB's banking expertise with the recent recruitment of a senior Sukuk Securitization Structurer. This will, in return, allow QIB to provide the necessary financing for medium and macro projects in the country.
The proposed Securitization will serve the bank's assertive plans to up-grade and develop its tools, and in particular "Sukuk" instruments which are the most suitable for short and long-term financing for infra-structure projects. He added that Sukuk's help attract liquidity available in the market and direct it towards financing purposes.
M. Al Jaidah confirmed in this respect that expectations show that Sukuk offers will jump to over US$ 100 billion within the five coming years, as opposed to 13 billion[KC1] in 2006. He expected also that the use of Sukuk in financing will significantly grow in the coming stage and that QIB intends to play a leading role in developing this tool in order to satisfy the increasing demand on it as an effective Islamic financial tool.
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Info on Rasameel:
Rasameel Structured Finance Company (Rasameel) is a Kuwaiti Shareholding Company K.S.C. (closed) with an authorized and paid up capital of KD 30,000,000.
Headquartered in Kuwait, Rasameel is focused primarily on providing a Sharia'h compliant portfolio of predictable cash flow generating assets and securities in the form of asset securitization to its clients interested in structured Islamic investment products. In addition, it provides risk management, investment system outsourcing and financial advisory services to a wide array of institutional investors and finance companies.
Rasameel refine their innovative product packages to comprise the individual needs of their clientele. To achieve this Rasameel is, at present, the only complementary Islamic investment company in Kuwait that provides alternative opportunities to those investors who shy away from investment in private equity or direct investment in real estate but still wish to earn higher yield investment returns than those presently available as term deposits. For Further information please contact Mrs. Anwar Al Braikan +965 2252402 or email: aalbraikan@rasameel.com or website: www.rasameel.com
[KC1]The current Sukuk market according to our data for 2006 is over $20bn.
© Press Release 2007
