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Qatar Islamic Bank not planning another sukuk issue - CFO
December 7, 2016 / 1:00 PM / a year ago

Qatar Islamic Bank not planning another sukuk issue - CFO

DOHA, Dec 7 (Reuters) - Qatar Islamic Bank (QIB) does not have any immediate plans to issue more sukuk to strengthen its capital position and improve liguidity following recent deals, its chief financial officer said on Wednesday.

Banks in the Gulf have been active bond and sukuk issuers this year as they seek to replenish funds which had been placed on deposit with them by Gulf governments who are now withdrawing the cash to plug budget shortfalls caused by lower oil prices.

Qatar’s largest sharia-compliant lender by assets sold $368 million of sukuk in a private placing with investors in September, Gourang Hemani told Reuters on the sidelines of a financial conference in Doha.

This was the same month that QIB announced it had sold a 2 billion-riyal ($549 million) Additional Tier 1 perpetual sukuk, which strengthened the bank’s core capital position and would support its business growth.

But further sukuk issues are not imminent, Hemani said. “We keep assessing our requirements and the market situation. We will go to market as and when needed,” he said.

In February this year, QIB raised to $3 billion the limit of an existing $1.5 billion sukuk programme.

The $368 million deal is the only one currently outstanding under the programme, Hemani added. ($1 = 3.6407 Qatar riyals) (Reporting by Davide Barbuscia; Editing by David French, Greg Mahlich)

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