Estithmar Holding QPSC Successfully Issues A QAR 500 Million Sukuk
The brand marks the issuance of the first corporate Sukuk in Qatari Riyal
Estithmar Holding QPSC has announced the successful issuance of a QAR 500 million Sukuk, marking the first corporate Sukuk denominated in Qatari Riyal. This issuance is the inaugural tranche of the company's QAR 3.4 billion Sukuk program, now listed on the London Stock Exchange's International Securities Market (ISM).
The three-year Sukuk offers an 8.75% coupon rate and has drawn significant interest from a range of institutional investors, including banks, insurance companies, and asset managers, both governmental and non-governmental. Settlement of the Sukuk is expected to occur within five days, highlighting a swift and efficient process.
Capital Intelligence rates the Sukuk program qaBBB (stable) on the Qatar National Scale, a testament to Estithmar Holding's strategic ambitions. Al Rayan Investment LLC, The First Investor QSCC, and Lesha Bank LLC served as joint lead managers for this issuance, ensuring a broad reach for potential investors.
The issuance marks a critical step for Estithmar Holding in its efforts to diversify funding sources to fuel its long-term growth strategy. Group CEO Eng. Mohamad Bin Badr Al-Sadah described the issuance as a "historic milestone," noting that its successful listing on the London Stock Exchange reflects the market's confidence in Estithmar Holding's strategic plans.
"Our first corporate QAR-denominated Sukuk has garnered substantial interest from a diverse investor base, underscoring confidence in our growth plan across our four key divisions: healthcare, services, ventures, and specialized contracting," said Al-Sadah.
The healthcare division of Estithmar Holding has experienced rapid expansion, including significant progress with The View Hospital in partnership with Cedars-Sinai, the opening of the Korean Medical Center, and plans for the Algerian-Qatari-German Hospital in Algeria.
The company also expands regionally, with two hospitals already operating in Iraq. Estithmar Holding now operates healthcare facilities with a combined capacity of over 2,000 beds, supporting Qatar's ambitions in medical tourism and enhancing healthcare services in the region.
The company is experiencing robust growth in the services sector, which includes facilities management, catering, and resource supply, both domestically and internationally. The ventures sector is poised for major achievements with upcoming projects like the Rosewood Resort in the Maldives and Rixos in Baghdad, alongside ongoing tourism developments in Qatar, such as Al Maha Island, Katara Hills, and Maysan Doha.
Estithmar Holding's specialized contracting division is also expanding significantly, particularly in Saudi Arabia, where it has secured strategic projects that have increased its market share. Through these initiatives, the company is strengthening its presence in the Kingdom.
"The success of this Sukuk program aligns with our broader growth strategy," Al-Sadah added. "Our objective is to continually enhance shareholder value and maintain leadership across all operating sectors."
The issuance of the Sukuk not only diversifies Estithmar Holding's funding sources but also underscores its capability to attract international investors, reflecting its commitment to growth and expansion in various sectors. As the company continues to execute its long-term strategic plans, it remains focused on achieving sustainable development and reinforcing its market position.
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