Salam Bounian raises $137.5mn from sukuk for ‘The Gate’ project

DOHA: Salam Bounian Development Company, a subsidiary of Salam International Investment, has raised $137.5mn through Islamic bonds, which would be listed on the Luxembourg Stock Exchange.

Qatar Islamic Bank (QIB), along with QNB Al Islami and Al Safa, the Islamic banking division of Commercialbank, had arranged and closed the Musharaka sukuk for the Salam Bounian, which would use the proceeds for the construction of ‘The Gate’, a mixed-use real estate project coming up in West Bay.

“This marks the first time ever that a sukuk issue was managed completely by Qatari banks, without the involvement of any foreign institutions,” said Jean-Marc Riegel, General Manager, Investment Banking and Development Group, QIB.

On the listing of the sukuk, QIB said internationally, the bond is tradable through its trading desks in Doha and in London through European Finance House (EFH) and in Kuala Lumpur through Asian Finance Bank (AFB). Both EFH and AFB are subsidiaries of QIB.