Qatar Islamic Bank Closes $1 Billion Unsecured Term Murabaha Financing Facility

Strategic Insights -

Qatar Islamic Bank (QIB), the largest Islamic bank in Qatar, has completed a significant financing deal, meeting strong demand from the global banking community. The 3-year, $1 billion unsecured Dual-tranche Term Murabaha Financing Facility was oversubscribed by two times, with 15 regional, Asian, and international banks participating in the syndication. This reflects the bank's solid financial status and its leading position in the Islamic banking market.

Key Takeaways:

  • The $1 billion unsecured Dual-tranche Term Murabaha Financing Facility was oversubscribed by two times, with the initial launch amount of $600 million being increased due to strong demand.
  • The syndication involved 15 regional, Asian, and international banks, including HSBC Bank Middle East Limited, SMBC Bank International PLC, and Standard Chartered.
  • QIB's solid financial status and leading position in the Islamic banking market were reflected in the strong interest received from the global banking community.
  • QIB's risk management is effective, with a non-performing financing assets ratio of 1.75% and a healthy coverage ratio for non-performing financing assets at 95.1%.
  • QIB continues to uphold a conservative impairment policy, maintaining a coverage ratio of 95.1%.
  • The bank's strong performance has been recognized by international credit ratings and numerous awards.
  • The facility was orchestred by QIB's Wholesale Banking Group, with Norton Rose Fulbright and White & Case acting as legal advisors for the Mandated Lead Arrangers and QIB, respectively.

Statistics:

  • $1 billion: The size of the unsecured Dual-tranche Term Murabaha Financing Facility.
  • 2 times: The facility was oversubscribed, reflecting strong demand from the global banking community.
  • 3 years: The duration of the financing facility.
  • $600 million: The initial launch amount of the facility, which was increased to $1 billion due to strong demand.
  • 15: The number of regional, Asian, and international banks participating in the syndication.
  • 5.3%: The growth in profits reported by QIB in the first half of 2025, compared to the same period in 2024.
  • QAR 2,175 million: The profits reported by QIB in the first half of 2025.
  • 1.75%: The non-performing financing assets ratio maintained by QIB.
  • 95.1%: The coverage ratio for non-performing financing assets maintained by QIB.
  • QAR: The currency of Qatar, used for QIB's financial reports.

Sources:

  • Qatar Stock Exchange (QSE)
  • Qatar Islamic Bank (QIB)