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By Davide Barbuscia
DUBAI (Reuters) – Qatari Islamic lender Masraf Al Rayan has hired banks before the potential sale of sukuk, or Islamic bonds denominated in US dollars, sources close to the case said.
The proposed deal – which would be Masraf's first public debt sale – would follow the issuance of international bonds by Qatar Islamic Bank and Qatar National Bank, while the Gulf State banks are taking advantage of the improved market conditions to strengthen their finances.
The expected five-year sukuk will have a reference size, which is generally more than $ 500 million (£ 378.39 million), the sources added.
Masraf hired a group of banks, including Barclays and Standard Chartered, to arrange the deal, the sources said.
Masraf did not respond to a request for comment.
Barclays and Standard Chartered did not immediately respond to requests for comment.
Last month, Masraf shareholders approved a $ 1 billion increase in the bank's emissions program limit, which would rise to $ 1 billion "in order to meet the general requirements of the bank in terms of financing, "said the bank in a statement on February 26.
According to market conditions, Masraf could sell the sukuk soon, potentially already this week, the sources said.
Qatar Islamic Bank, the largest Islamic lender in the country, and Qatar National Bank, the largest bank in the Middle East and Africa, raised a combined total of $ 1.75 billion last week .
The securities issues followed a 12 billion dollar jumbo bond sale by the Qatari government earlier this month – the largest emerging market sovereign debt sellout this year – which provided a new benchmark for Qatari borrowers.
(Report by Davide Barbuscia, additional report by Eric Knecht in Doha, edited by Jane Merriman)
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