IIFM endorses State of Qatar Global Sukuk USD700 Million Bonds (Sukuk)

Manama (Bahrain): The International Islamic Financial Market (IIFM) endorsed State of Qatar Islamic Sukuk on 8 September 2003. The endorsement comes in line with the IIFM’s aim to develop the Islamic capital market and to ensure the harmonisation and standardisation of Islamic financial products so as to achieve global appeal and acceptance.

Closed at US$ 700 million the issue is largest sovereign Global sukuk ever structured under ijarah muntahiyah bi al-tamlik after Bahrain and Malaysia ijarah sukuk. It is also the first Global Islamic bond (sukuk) offering by Qatar which is a very supportive country of the Islamic banking industry and possesses great economic potential.

The transaction is also the first from a non-member of IIFM and it will definitely have a great impact on IIFM vision to be the premier International Islamic institution that promotes active trading of Islamic capital market instruments.

The issue will be listed at Luxembourg Stock Exchange and subsequently at Labuan International Financial Exchange. This is another sign of the growing cooperation between Muslim countries in the Far East and countries in the Middle Eastern region which is also in line with IIFM objective of enhancing cooperation among Muslim countries.

The certificate holders will be entitled to receive periodic profit distribution.

Hong Kong & Shanghai Banking Corporation (HSBC) and Qatar International Islamic bank act as the lead managers and the market maker for the issue. Commerce International Merchant Bankers Bhd-Malaysia (CIMB) was appointed as the co-manager for the Far East region. The issue is rated A+ by S&P. the seven-year Islamic bonds will mature on 2010 and can be redeemed after five years.

Islamic Capital &
Money Market
Unification
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