Doha – Mubasher: Qatar First Bank (QFB) has launched the ‘Ijarah Aviation Structured Note’ to meet the increasing appetite of local and regional investors seeking innovative investment opportunities.
Met with great enthusiasm, the Ijarah bond 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, according to a statement.
The leading shariah compliant bank said that the full amount of the equity underwritten by QFB has been sold to investors.
“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,” QFB’s Chief Executive Officer, Ziad Makkawi, said.
“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 shariah compliant structuring capabilities and commitment to meeting client needs,” he added.
Ayman Zaidan, QFB’s Head of Treasury and Investment Management, said that 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 and investment department capabilities in order to offer sharia 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.
