The bank plans to sell a five-year, benchmark-size dollar sukuk “when market conditions permit,” Chief Financial Officer Edward Wong said in a telephone interview from Doha today. “We already have the shareholders’ approval to undertake an issue when and if we might see a need for it.”
Sales of sukuk in the Persian Gulf jumped 51 percent so far this year to $3.73 billion compared with $2.47 billion in the year-earlier period, Bloomberg data show. Qatar Islamic Bank (QIBK) SAQ was the last corporate based in the gas-rich nation to sell Islamic bonds when it issued $750 million in September 2010, data compiled by Bloomberg show.
The bank will to consider it’s “internal needs” before tapping the market, Wong said, declining to provide further details. The Shariah-compliant lender posted a first-half profit of 322 million riyals ($88 million) compared with 272 million riyals in the year-ago period.
Islamic bonds pay asset returns to comply with Shariah law’s ban on interest.
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