Masraf Al Rayan rated A1 by Moody's with a stable outlook, has announced the successful issuance of US$ 750 million Sukuk with a term of 5 years under the Bank’s existing US$ 2 billion Sukuk programme.

MAR’s Sukuk issuance was 4.4 times oversubscribed (c. US$ 3.3 bn). The overwhelming demand from investors has allowed the Bank to increase the issue size from an initial US$500 m to US$750 m. The issuance was priced at a spread of 185 basis points over the 5-year mid swap carrying a fixed profit rate of 2.21% per annum.

MAR’s Sukuk issuance has attracted investors from across the globe with 41% from Europe, 28% from Asia, 24% from MENA and 7% from US offshore accounts. By investor type, 69% were allocated to fund managers, 15% to banks and private banks, 8% to Agencies and 8% to insurance and pension funds. The success of the issuance was based on a comprehensive marketing strategy that aimed to demonstrate the strong fundamentals of MAR and the strength of the Qatari economy to the international investors.

Al Rayan Investment, Crédit Agricole CIB, HSBC, Mizuho, MUFG, QNB Capital, Société Générale and Standard Chartered Bank acted as Joint Lead Managers & Bookrunners on this transaction.