QIB MIGHT GO THE SUKUK WAY
Qatar Islamic Bank (QIB) could use future sukuk issues to back a potential acquisition, the bank's Chairman Sheikh Jassim bin Hamad bin Jassim bin Jaber Al Thani told Reuters.
Qatar's largest sharia-compliant lender won approval at its annual general meeting to double its sukuk programme to $3 billion (QR10.93 billion), as well as retain the mandate to issue QR3 billion ($824 million) to enhance core capital. QIB was fine with its capital reserves at present, its chairman said as the bank had a total capital adequacy ratio – a key indicator of a lender's health – of 14.1% at the end of December, above a minimum requirement of 12.5%. “We want to have it approved so at a later stage when we need it, probably for an acquisition, it is available and can be used,” he said.