Qatar First Bank L.L.C. (Public) (“QFB”), a leading Shari’ah compliant bank based in Qatar and listed on the Qatar Stock Exchange (QSE), has launched the ‘Ijarah Aviation Structured Note’ to meet the increasing appetite of local and regional investors seeking innovative investment opportunities. The Ijarah Note, which has been met with great enthusiasm, offers an investment in a relatively stable sector that provides predictable attractive returns over the medium to long term; an annual cash return of 9% to be paid to clients on quarterly basis.
The full amount of the equity underwritten by QFB has been sold to investors.
QFB Chief Executive Officer, Ziad Makkawi, said:
“We have seen an overwhelming response from the market as investors look to maximize returns by investing in sectors that historically have shown lower volatility in earnings and high asset mobility”.
“The note is one of a series of structured products QFB will be bringing to the market in the coming months, and demonstrates our strong Sharia’h compliant structuring capabilities and commitment to meeting client needs.” Makkawi added.
Further commenting on the success of the note, Ayman Zaidan, QFB’s Head of Treasury and Investment Management, said:
“The demand for Ijarah structured notes in many sectors, such Real Estate, Aviation, Equipment and other income generating assets, has seen a stable increase due to growing appetite for yield at the current low profit rate environment in many of the world’s developed economies. Our clients’ positive reaction towards the Ijarah Aviation Structured Note testifies of the market appetite for the risk return profile of the note.”
“QFB is expanding its Treasury & Investment department capabilities in order to offer Shari’ah compliant structured products and investment solutions to its clients, and invest with them in opportunities that meet the growing needs of the market.” Zaidan concluded.
Previously announced, QFB and Novus Aviation Capital, one of the world’s long standing and fastest growing aircraft leasing platforms, had invested in the global aircraft leasing industry through the indirect acquisition and lease of two 2011 vintage Boeing 737-900ER single-aisle aircraft to Indonesia’s Lion Air.
The lease agreement is being managed by Dubai-based Novus Aviation Capital, a specialist in aircraft sourcing, trading, leasing and other related services.
Makkawi concluded: “We are delighted to have provided our clients with this attractive investment; meeting our promises to act as a trusted advisor and gateway to interesting opportunities. In today’s challenging market and economic conditions, our strategy calls for deploying capital alongside our clients while enabling them to benefit from recurring and sustained income streams. This direction is in line with our strategy to diversify QFB’s revenue sources.”