DOHA: Masraf Al Rayan, Qatar’s second largest Islamic Bank, rated A1 by Moody’s with a stable outlook, has announced the successful issuance of $500M Sukuk with a term of 5 years under the Bank’s existing $2bn Sukuk programme.
Masraf Al Rayan’s debut issuance was 3 times oversubscribed as a result of strong investor demand. The issue was priced at a spread of 140 basis points over the 5-year mid swaps carrying fixed profit rate of 3.025 per annum.
The participation included investors from around the world with 44 percent from Asia, 44 percent from Mena and 12 percent from Europe. By type, 47 percent were fund managers, 38 percent were banks and private banks, and 15 percent were insurance and agencies.
The success of this process was based on a comprehensive marketing strategy that aimed to showcase the strong fundamentals of Masraf Al Rayan and the strength of the Qatari economy to international investors.
Al Rayan Investment, Boubyan Bank, MUFG, QNB Capital and Standard Chartered Bank acted as Joint Lead Managers & Bookrunners on this transaction.
