Dukhan Bank announces the successful debut issuance of Additional Tier 1 USD500mln Sukuk at the lowest price for this type of issuance in Qatar

Issuance of Additional Tier 1 Sukuk with a value of USD500m and profit rate of 3.95%. The issuance was more than 4.5 times oversubscribed with order books peaking at USD2.35bn

Dukhan Bank announces the successful debut issuance of Additional Tier 1 USD500mln Sukuk at the lowest price for this type of issuance in Qatar
  • The significant demand for the issuance confirms the strength of the financial position and the confidence enjoyed by Dukhan Bank and the Qatari economy amongst the global investor community.

Doha, Qatar: Dukhan Bank announced the issuance of its debut Additional Tier 1 USD500m Sukuk. The Sukuk is priced with a profit rate of 3.95%, the lowest rate for this type of issuance in the Qatari market.

In addition to providing the lowest pricing in Qatar, the books were covered 4.5 times, peaking at USD2.35 billion. This is reflective of the strength of the Qatari economy, which enjoys significant global confidence. It is further indicative of the strong methodology adopted by the Qatar Central Bank (QCB) in its supervision of the banking sector.

His Excellency Sheikh Mohammed bin Hamad bin Jassim Al Thani, Chairman and Managing Director of Dukhan Bank, expressed his happiness with the success of this issuance:

“We are very pleased with the success achieved by the issuance of this Sukuk which follows alongside significant investor demand. This is yet further evidence of the Qatari economy’s distinguished position. Therefore, I would like to assure that Dukhan Bank will continue to implement its strategic plans and move steadily towards strengthening its leadership on all levels. I would like to address my sincere gratitude to the Joint Lead Managers and advisors that supervised the process”.

Commenting on the issuance of the Sukuk, Mr. Khalid Al-Subeai, CEO of Dukhan Bank stated:

“We are extremely pleased with the issuance of Additional Tier 1 Sukuk at the lowest price in Qatar for this type of issue. The issuance has seen significant global demand from investorsthat far exceeded expectations and included more than 84 investors in more than 19 countries around the world, where coverage peaked at 4.5 times the issuance. This is an indication of the confidence and good reputation Dukhan Bank and the Qatari economy enjoy amongst the global investor base. Moreover, it’s supported by the bank’s strong financial position and distinguished ratings by international rating agencies”.

Al-Subeai added:

“We believe that the issuance of this Sukuk is a testament to Dukhan Bank’s competitive market positioning post our merger, and a reflection of the confidence global markets place in the bank’s robust fundamentals. Finally, I am pleased to extend my sincere thanks to the banks and financial institutions that have managed the issuance of the Sukuk”.

The issuance comes after a series of global investor meetings and presentations led by Dukhan Bank’s senior management team.

Additionally it comes as the latest step in Dukhan Bank’s endeavors to increase its suite of banking products and financial services in order to strengthen its position in the Islamic banking sector, supported by “A” and “A2 / Prime-1” with a stable outlook by Fitch and Moody’s global ratings. Recently, Dukhan Bank revealed its new identity, nearly a year after the completion of the first merger in the Qatari banking sector and continues to pursue its banking journey with a new brand look and enhanced vision. Therefore, the bank uses all its resources, innovative services and advanced banking solutions to enable individuals and institutions to make financially sound choices whilst planning for a prosperous future ahead.

Dukhan Bank appointed Standard Chartered Bank to act as Sole Global Coordinator. Citi, Credit Suisse, J.P. Morgan, KFH Capital, Q-Invest, QNB Capital, Société Générale and Standard Chartered Bank acted as Joint Lead Managers and Bookrunners.


Send us your press releases to pressrelease.zawya@refinitiv.com

© Press Release 2021

Disclaimer: The contents of this press release was provided from an external third party provider. This website is not responsible for, and does not control, such external content. This content is provided on an “as is” and “as available” basis and has not been edited in any way. Neither this website nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this press release.

The press release is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Neither this website nor our affiliates shall be liable for any errors or inaccuracies in the content, or for any actions taken by you in reliance thereon. You expressly agree that your use of the information within this article is at your sole risk.

To the fullest extent permitted by applicable law, this website, its parent company, its subsidiaries, its affiliates and the respective shareholders, directors, officers, employees, agents, advertisers, content providers and licensors will not be liable (jointly or severally) to you for any direct, indirect, consequential, special, incidental, punitive or exemplary damages, including without limitation, lost profits, lost savings and lost revenues, whether in negligence, tort, contract or any other theory of liability, even if the parties have been advised of the possibility or could have foreseen any such damages.

More From Press Releases