AlRayan Bank announces successful issuance of $500m 5-year Senior unsecured RegS Sukuk
The Peninsula
Doha, Qatar: AlRayan Bank rated A2 by Moody s with a stable outlook has successfully issued its $500m 5 year Senior Unsecured RegS Sukuk at a final Pr...
Doha, Qatar: AlRayan Bank rated A2 by Moody’s with a stable outlook has successfully issued its $500m 5-year Senior Unsecured RegS Sukuk at a final Price of 5-year US Treasuries + 80 bps (Expected Profit rate of 4.875% at an Issue price of 99.82).
The successful completion of this transaction underscores the robustness of the Qatari economy and AlRayan Bank’s strong credit fundamentals. This issuance reaffirms AlRayan Bank’s standing as a leading financial institution in the region and marks a significant milestone in its journey to diversify its funding sources and continue to strengthen its presence in the international markets.
In many ways this was a landmark transaction, including a strong return to the Capital markets after a 5-year hiatus. AlRayan Bank’s first transaction since the successful completion of the merger in December 2021 and the establishment of the bank’s new corporate identity “AlRayan Bank” First Qatari bank to issue a USD benchmark Sukuk RegS offering out of the QFC Entity (MAR Finance LLC, established in Qatar Financial Centre “QFC”) Largest price tightening from IPTs in recent deals with a sizeable 40bps reduction in spread. Tightest re-offer spread over US Treasuries ever achieved by any Qatari bank at US 5Y Treasury+80bps
A final orderbook of $1.5bn (covered more than 3 times) that peaked at over $1.9bn.
Both investors and geographic diversification were achieved. H E Sheikh Mohamed bin Hamad Bin Qassim Al Thani, Chairman of AlRayan Bank, commented “We are delighted with the outstanding success of this issuance."
