Cairo-Mubasher: The extraordinary general meeting of Qatar Islamic Bank (QIB) approved the issuance of QAR 5 billion unlisted Sukuk that shall be eligible for inclusion as Additional Tier 1 Capital in accordance with Basel III.


The meeting was held on Sunday to amend the bank's Articles of Association.


Furthermore, the meeting agreed to allow the bank to issue Sukuk of any kind, QIB said in a statement, adding that the amendment will also allow the issuance of capital instruments as part of the bank's additional capital. Such amendments are to be implemented in accordance with the Central Bank's terms and conditions.


It's a Sukuk with long-term maturity,” QIB CEO Bassel Jamal said, adding that “It is not convertible into shares.” 


Jamal added that the Sukuk issuance aims to raise up enough capital to accelerate the bank’s expansion and fund projects. 


The bank’s profit rose 20% to QAR 1.6 billion ($439.2 million) during the fiscal year (FY) 2014, compared to figures from FY13.