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Qatari company launches first local currency sukuk

By Pramod Kumar
A cashier counts Qatari riyal notes at a money changer in Doha. Estithmar's three-year sukuk offers 8.75 percent coupons Reuters/Fadi Al-Assaad
A cashier counts Qatari riyal notes at a money changer in Doha. Estithmar's three-year sukuk offers 8.75 percent coupons

Doha-based Estithmar Holding has issued a QAR500 million ($137 million) sukuk (Islamic bond), the first corporate local currency-denominated sukuk in the country.

This issuance is the first tranche of its QAR3.4 billion sukuk programme, listed on the London Stock Exchange’s international securities market.

The three-year sukuk offers 8.75 percent coupons, attracting interest from banks, insurance companies and asset managers.

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Estithmar said the sukuk will help diversify its funding sources to support its long-term strategic growth plans and objectives.

The company is currently focusing on investments in the healthcare sector, operating facilities with more than 2,000 beds.

Estithmar’s contracting business is witnessing significant growth, especially in Saudi Arabia after bagging strategic projects.

In July credit rating agency S&P maintained its global sukuk issuance forecast at $160 billion to $170 billion after a good performance in the first half of 2024.

Total issuance reached $91.9 billion over the first six months of the year, up slightly from last year’s $91.3 billion. However, foreign currency issuances increased by 24 percent year on year, reaching $32.7 billion by June 30.

The main contributors were Saudi Arabia, the UAE, Oman, Malaysia and Kuwait issuers.

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