QIIB CEO Dr Abdul Basit Ahmed Al Sheibi
DOHA: QIIB plans to raise between $300m-$500m via Sukuk this year. As part of the issuance programme, the bank will hold roadshows in selected Asian and European markets next month, the bank CEO Dr Abdul Basit Ahmed Al Sheibi revealed yesterday.
Speaking on the sidelines of the bank’s ordinary general assembly meeting, the CEO said the bank got shareholders approval to go for the senior Sukuk. “May be next month we may hold roadshows to test the investors’ appetite in the international market before deciding on the real size of the Sukuk and tenor ”, he said.
QIIB issued its first Sukuk in 2012 for $700 and it was matured in October 2017. “We were planning for the new issuance immediately, but because of the unprecedented crisis in the region and the rising rate hike horizon, we thought better to wait”, he said. Singapore and Hong Kong are among other Asian markets QIIB is planning to hold the roadshows.
Dr Al Sheibi said the target size of the Sukuk is something between $300m to $500m. The bank will take a final call on the size and the tenor of the Sukuk after testing the market. The market is currently very volatile because of the hike in interest rates. “We are sitting with our advisors, they have been telling us to wait and see the clear directions of Fed. So, our idea is to explore the market mood”, he said.
“We understand that we are already in a rate hike horizon, so we cannot prolong our issuance decision. Borrowing cost is expected to go further high. We do not want to wait for long and end up in a high rate horizon”, he said.
Dr Al Sheibi said the bank got the shareholders approval to extend the 2017 general assembly’s approval to issue Additional Tier1 sukuk up to QR3bn, of which QR1bn was issued during 2016, and delegate the bank’s board of directors to decide on the size of each issuance and the issuance currency pending the regulatory approval.
QIIB’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 .
On his 2018 Outlook, Dr Al Sheibei bank CEO said he is quite optimistic on the local banking sector. Given the Government’s projected infrastructure spending, it is definitely going to reflect on the bank’s balance sheets positively. He said the NPAs in Qatar’s banking sector are within the acceptable levels. Global ratings agencies’ reports are a reflection of this fact, he said.
