The Qatar International Islamic Bank (QIIB) has raised USD 500 mn from a green sukuk (Shariah-compliant bond) sale on the London Stock Exchange, according to a statement. The issuance was 8x oversubscribed to over USD 4 bn and marks the first time QIIB lists sustainable sukuk outside of Qatar.

The details: The five-year USD-denominated green sukuk was priced at 120 basis points (bps) above US Treasuries — tightened from initial reports of a 160 bps spread — and will have a 5.247% annual yield.

Who’s buying? The issuance garnered support from over 120 investors from across MENA, Asia, EU, and America markets, the bank notes, adding that 55% of investments were inbound from outside the Mena region. The banking group attributes its successful listing to its high credit ratings which stands at “A2” from Moody’s and “A-” from Fitch, according to the statement.

QIIB published its Sustainable Finance Framework on green projects earlier this month, noting it will use the framework to issue green, social, or sustainability-labeled sukuk and other financing products for eligible projects including renewable energy, green transportation, energy efficiency, and sustainable construction.

REMEMBER- On a national level, Qatar will also be ready to list its first sovereign green bond very soon, Qatari Finance Minister Ali Al-Kuwari said last week on the sidelines of the World Economic Forum in Davos. “We are not hungry for money, but it will be mainly to send a strong statement about the need to counter climate change,” Al-Kuwari said. The country offered USD 75 bn in sustainable financing last year, and plans to establish a sustainable finance market worth more than USD 22 tn globally by 2031.

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