Qatar Islamic Bank (QIB), the Gulf state’s largest sharia-compliant lender by assets, has raised 2 billion riyals ($550 million) with a Tier 1 perpetual sukuk issue, it said on Wednesday.
The sale was completed on Tuesday and was in accordance with Basel III banking rules, it said in a statement to the bourse. The issue will enhance the bank’s capital adequacy ratios and support its business growth, it said.
QIB joins a string of Gulf banks which have tapped the debt markets in recent months to replenish their reserves after a period of strong lending growth.
In February, shareholders of QIB approved the issue of up to 5 billion riyals of Tier 1 sukuk.
Last month, Saudi Arabia’s National Commercial Bank raised 1 billion riyals ($267 million) through a sukuk issue that enhanced its core capital.