Gulf Inter-national Bank (GIB) has completed the pricing and closing of a three-year $300 million Sukuk Al Murabaha private placement.

The sukuk certificates will pay a profit rate of six-month US dollar Libor plus 130 base points on a semi-annual basis, and will mature on December 7, 2014.

The sukuk offering was successfully placed with a number of institutional investors, with JP Morgan acting as sole manager of the placement.

"We are delighted with the successful closing of our inaugural placement in the Islamic sukuk market, and securing an attractive pricing despite the volatile market backdrop," said GIB chief executive Dr Yahya Alyahya.

"This transaction confirms GIB's commitment to diversify its funding sources by tapping into new pockets of liquidity such as the Islamic sukuk market, and utilise innovative funding structures to achieve the lowest possible cost of funding for GIB," he added.

"The funds raised will allow us to refinance our existing term-finance maturities, further diversify our investor base and provide the resources to progress our business strategy," Dr Alyahya said.

"The sukuk private placement represents further progress in GIB's programme to more closely align the maturity profile of its assets and liabilities and reduce its previous reliance on short-term wholesale deposits," he added. – TradeArabia News Service