Qatar’s Dukhan Bank gets $500 million AT1 Islamic bonds
DUBAI, July (Reuters) – Qatar’s Dukhan Bank sold $500 million in Additional Tier 1 (AT1) sukuk, or Islamic bonds, at 3.95% on Wednesday after it received more than $2.25 billion in orders, a document showed.
The perpetual sukuk were tightened from initial price guidance of around 4.375%.
AT1 bonds, the riskiest debt instruments banks can issue, are designed to be perpetual but issuers can call them in after a specified period. Dukhan’s sukuk cannot be called in for 5-1/2 years.
The debt sale follows a steady stream of AT1 issuance from banks in the oil-producing Gulf, where banks have usually turned to senior bonds. With ample liquidity, they have looked to bolster Tier 1 capital – the core measure of a bank’s capital.