QIB signs $300m bridge loan

27 December 2007
Qatar Islamic Bank (QIB) has signed a $300m 12-month Islamic finance deal with ABN Amro and Standard Chartered, who will also arrange a sukuk issue for the Qatari lender in 2008.

The sukuk will be used to refinance the Islamic finance deal, and is part of the bank’s plan to change its funding sources to better match its assets and liabilities. QIB is also looking into launching the first securitisation in Qatar that is being arranged by HSBC.

The current $300m facility is structured as a murabaha, which is structured as a sale with a predetermined profit, rather than lending and charging interest.

Salah al-Jaidah, chief executive of QIB, says he hopes to launch the sukuk in about six months time.

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