Dukhan Bank Announces Successful Debut Issuance Of $800M Senior Sukuk
Date
10/3/2024 4:00:16 AM
(MENAFN- The Peninsula)
The Peninsula
Doha: Dukhan Bank, rated A2 by Moody's (stable outlook) and A by Fitch (stable outlook), successfully issued a $800m 5-year senior unsecured Sukuk with a profit rate of 4.56% per annum representing a spread of 100bps over 5-year US Treasuries.
The transaction marks the debut Senior Sukuk issuance for Dukhan bank and was met with outstanding demand from global and regional investors. Order books were covered more than 3 times and peaked at $2.6bn, enabling the bank to issue $800m – the largest issue size achieved by a Qatari Islamic bank since 2020. Final price guidance came in at 100bps over 5-year US Treasuries, representing 30bps tightening from the initial price thoughts of 130bps.
The success of the transaction is reflective of the strength of the Qatari economy and Dukhan Bank's strong credit fundamentals.
The issuance reaffirms Dukhan Bank's position as a leading financial institution in Qatar. It is also a significant milestone for the bank as it continues to broaden its funding base and enhance its presence in international markets.
Sheikh Mohammed bin Hamad bin Jassim Al Thani, Chairman and Managing Director of Dukhan Bank, commented“We are delighted with the exceptional success of this debut senior sukuk issuance. This success is a testament to Qatar's credit robustness and aligns seamlessly with the ambitious goals outlined in Qatar's National Vision 2030. We would like to thank everyone who contributed to the success of the transaction.”
Ahmed Hashem, Acting Group Chief Executive Officer of Dukhan Bank, commented“We are thrilled with the overwhelming response to this sukuk issuance. This reflects the global confidence in both Qatar's economic stability and Dukhan Bank's strong financial foundation.
It also highlights the bank's esteemed standing within the international financial community. We extend our deepest appreciation to the Joint Lead Managers, whose expertise and dedication were instrumental in guiding this transaction.”
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