Doha: Dukhan Bank announced the successful issuance of Additional Tier 1 (AT1) capital sukuk worth USD 500 million, with a non-call period of 5.5 years and a fixed profit rate subject to reset, yielding 6 percent. The issuance has been touted as achieving the best AT1 sukuk yield in the region so far this year, with strong demand observed from a wide range of institutional and private banking investors both regionally and internationally.

According to Qatar News Agency, the initial price guidance for the sukuk was set at 6.50 percent. However, due to strong market demand, the final pricing was tightened to 6 percent, reflecting a 50 basis point improvement. The issuance was more than three times oversubscribed, showcasing continued investor confidence in Dukhan Bank's credit strength, capital position, and the resilience of Qatari Islamic bank capital instruments, despite cautious regional market conditions.

HE Executive Board Member and Managing Director of Dukhan Bank, Sheikh Mohammed bin Hamad bin Jassim Al-Thani, stated that the issuance underscores strong investor confidence in the bank and solidifies its standing as a leading Islamic bank in the region. He also highlighted the bank's robust financial fundamentals and long-term strategic direction. He expressed gratitude to the Qatar Central Bank for its ongoing support, as well as to investors and advisors for their trust.

Acting Group CEO Ahmed Hashim emphasized that the pricing achieved represents the best AT1 yield in the region this year, reflecting market confidence in Dukhan Bank. He added that the issuance enhances the bank's capital base, aligning with its growth ambitions and affirming its status as a trusted issuer in international capital markets.