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Tuesday, October 15, 2024
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“Warba” succeeds in arranging Sukuk Issuances for Qatar International Islamic Bank and Arada Developments (UAE)

publish time

30/09/2024

publish time

30/09/2024

KUWAIT CITY, Sept 30: Warba Bank announced Qatar International Islamic Bank’s USD 300 million perpetual additional Tier 1 capital sukuk offering, which found both regional and global success. Warba Bank acted as Joint Lead Manager and Joint Bookrunner on the transaction along with Al Rayan Investment LLC, Citi, Doha Bank, Dubai Islamic Bank, Dukhan Bank, Emirates NBD Capital, HSBC, Lesha Bank, Mashreq, QNB Capital and Standard Chartered. Books which opened on Tuesday, September 24th 2024 and closed on the same day, received massive interest from regional and international market participants, as the order book reached USD 2.5 billion, 8.33x the issuance size.

Warba Bank said in a press statement that the “Non-Callable in 5.5 Years” USD 300 million perpetual Sukuk was successfully issued at a fixed profit rate of 5.45%. The Sukuk are listed on the International Securities Market (ISM).

Warba Bank also announced the successful Sukuk Tap of USD 150 million for Arada Developments (UAE) issued at a Tap yield of 7.350%. This transaction, linked to the existing USD 400 Million Sukuk issuance that was listed in June 2024 on the International Securities Market (ISM) and Nasdaq Dubai, brings the total issue size to USD 550 million. The Transaction was successfully led by Abu Dhabi Commercial Bank, Dubai Islamic Bank, Emirates NBD Capital, Mashreq, Sharjah Islamic Bank, Standard Chartered Bank and Warba Bank, all acting as Joint Lead Managers and Bookrunners generating an order book reaching USD 480 million, 3.2x the tap issued size.

The strong demand for both issuances was reflected in their diverse allocation, which saw significant participation from a wide range of institutional investors across the globe.

In this context, Thuwaini Khaled Al-Thuwaini, Chief Investment Banking Officer at Warba Bank, said, “With the confidence of the market in hand, we succeeded in closing the sukuk issuances amid excellent market participation, which is a testament to Warba Bank’s robust Debt Capital Market capabilities and its active participation which has contributed to the successful sukuk issuances and reflects the market’s confidence and enthusiasm in both Warba Bank and the sukuk issuances.”

Al-Thuwaini pointed out the importance of Islamic financial tools and their role in strengthening global financial markets, which is evidenced by the level of demand and interest of global investors in recent sukuk issued by regional corporates and banking institutions. He underscored Warba Bank’s path to remain a significant player in the debt capital markets for years to come by continuing to focus on growth and expansion as Warba Bank aims to extend its reach and services to both institutional and individual investors through its commitment to ethical banking and innovative strategies.