Qatar’s QIIB Seeks Approval For Up To $825m Tier 1 Sukuk Issue

Qatar International Islamic Bank (QIIB) is seeking shareholder approval to raise up to SAR3 billion ($825 million) through a capital-boosting sukuk issue, becoming the latest Gulf bank to look to debt markets to replenish reserves after a period of strong lending growth.

The bank announced the plan on Monday after reporting full-year net profit of SAR826 million, up 10.1 per cent.

The Tier 1 sukuk would be used to support the bank’s capital requirements for future growth and expansion, it said in a statement to the bourse.

QIIB’s total capital adequacy ratio, a combination of Tier 1 and Tier 2 capital, stood at 16.27 per cent at the end of 2014 against a 12.5 per cent minimum prescribed by Qatar’s central bank.