Dukhan Bank Announces Successful Debut of $800 Million Senior Sukuk. In a significant financial event, Dukhan Bank, carrying an A2 rating from Moody’s with a stable outlook and an A rating from Fitch also under a stable outlook, has successfully navigated the complex financial waters to issue a substantial $800 million Sukuk. This 5-year senior unsecured Sukuk boasts a profit rate of 4.56% per annum, establishing a 100 basis points (bps) spread over the 5-year US Treasuries.
This issuance not only marks Dukhan Bank debut in the Senior Sukuk market but also stands out due to the exceptional demand it received from both global and regional investors. The order books for this issuance were more than triple-covered, reaching a peak of $2.6 billion. This overwhelming response enabled Dukhan Bank to secure the largest issue size achieved by a Qatari Islamic bank since 2020. Notably, the final price guidance was tightened by 30 bps from the initial thoughts of 130bps, settling at 100bps over the 5-year US Treasuries.
The success of this transaction speaks volumes about the robustness of the Qatari economy and the strong credit fundamentals underpinning Dukhan Bank. It’s a reaffirmation of Dukhan Bank’s prestigious position as a leading financial institution within Qatar, underlining its strategy to broaden its funding base and expand its presence in international markets.
Strategic Vision and Leadership Commentary
The enthusiasm surrounding this debut issuance resonates with the strategic goals set forth in Qatar’s National Vision 2030, aiming for a diversified and sustainable economy. Sheikh Mohammed bin Hamad bin Jassim Al Thani, Chairman and Managing Director of Dukhan Bank, expressed his satisfaction with the issuance’s success, noting, “We are delighted with the exceptional success of this debut senior sukuk issuance. This success is a testament to Qatar’s credit robustness and aligns seamlessly with the ambitious goals outlined in Qatar’s National Vision 2030.”
Moreover, Ahmed Hashem, the Acting Group Chief Executive Officer of Dukhan Bank, reflected on the global confidence the issuance has garnered. “We are thrilled with the overwhelming response to this sukuk issuance. This reflects the global confidence in both Qatar’s economic stability and Dukhan Bank’s strong financial foundation,” he remarked. He also extended gratitude towards the Joint Lead Managers, whose expertise was pivotal in navigating this complex financial undertaking.
Impact and Future Prospects
The success of this Sukuk issuance is likely to have several positive repercussions for Dukhan Bank and the broader Qatari financial landscape. It not only enhances Dukhan Bank’s liquidity and financial robustness but also positions it as an attractive partner for international investors. Looking ahead, Dukhan Bank is poised to leverage this successful financial maneuver to catalyze further growth, expand its services, and continue contributing to Qatar’s economic objectives outlined in the National Vision 2030.
Furthermore, the successful issuance could serve as a benchmark for other regional banks considering entering the Sukuk market, potentially leading to more robust and diverse financial offerings in the region. It underscores the attractiveness of Islamic financial instruments and their viability as a funding tool in global markets.
Conclusion
Dukhan Bank successful $800 million Sukuk issuance is not just a financial triumph but a strategic milestone that enhances its standing in the international financial community and contributes significantly to the economic fabric of Qatar. As the bank continues to build on this success, its role in shaping the future of Islamic finance on a global stage remains a testament to its strong foundation and forward-thinking leadership.