Doha, June 24 (QNA) - 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 bank said the issuance achieved the best AT1 sukuk yield in the region so far this year, with strong demand from a diversified base of institutional and private banking investors across regional and international markets.

It added that initial price guidance was set at 6.50 percent, before the final pricing was tightened to 6 percent, reflecting a 50 basis point improvement.

According to the statement, the issuance was more than three times oversubscribed, highlighting continued investor confidence in the bank's credit strength and capital position, as well as demand for 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 said the issuance reflects strong investor confidence in the bank and reinforces its position as a leading Islamic bank in the region, as well as the strength of its financial fundamentals and long-term strategic direction.

He thanked the Qatar Central Bank for its continued support of the banking sector, along with investors and advisors for their trust.

Acting Group CEO Ahmed Hashim said the pricing achieved the best AT1 yield in the region this year, reflecting market confidence in the bank, adding that the issuance strengthens the capital base in line with its growth ambitions and confirms its position as a trusted issuer in international capital markets. (QNA)