AlRayan Bank announces successful issuance of $500m 5-year Senior unsecured RegS Sukuk

30/05/2025 02:37 AST

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."

"The significant demand for our sukuk reflects the financial strength and credit worthiness of AlRayan Bank, which is backed by its asset quality, strong liquidity & robust capitalization. We extend our sincere gratitude to all those who contributed to the success of this transaction Omar Al-Emadi, Acting Group Chief Executive Officer of AlRayan Bank, commented "AlRayan Bank is pleased with its successful return to the international capital markets and with the remarkable response of this sukuk issuance not only from Qatar institutions but also from a diverse group of regional and international investors."

"This underscores the global confidence in Qatar's economic resilience and AlRayan Bank's solid financial standing within the international financial markets. We extend our deepest gratitude to the Joint Global Coordinators & JLMs, whose expertise and unwavering commitment & support played a pivotal role in the success of this transaction."

Mizuho & HSBC acted as Joint Global Coordinators while Al Rayan Investment, Dubai Islamic Bank, Dukhan Bank, The Islamic Corporation for the Development of the Private Sector, Mashreq bank, MUFG, Qatar International Islamic Bank, QNB Capital, SMBC, Standard Chartered Bank and Warba Bank acted as the Joint Lead Managers and Book runners.

The Peninsula