DOHA QATAR Telecom (Qtel) has signed its debut Islamic financing facility, the operator said on Tuesday.
The $500 million deal, which runs for 18 months and is structured as a revolving Murabaha facility, was provided by Qatar Islamic Bank in a capacity as sole mandated lead arranger, Qtel said in an emailed statement.
A murabaha is a sharia-compliant cost-plus-profit arrangement.
The signing ceremony took place at the Qtel headquarters. It is the first Islamic finance deal signed by Qtel, as QIB continues its mission to provide leading companies with the financial backing they need to fulfil their ambitions.
QIB assumed the role of Sole Mandated Lead Arranger and Investment Agent for the deal.
The financing is an 18 month Sharia-compliant “Revolving Murabaha”.
Qtel Group CEO Nasser Marafih said, “We are delighted to be part of the developing Islamic financing market in Qatar. QIB has done a great job in offering Qtel attractive terms, and this deal further strengthens the relationship between Qtel and QIB.” QIB Acting CEO Ahmad Meshari added: “This deal is the first financing arrangement to be entered into with Qtel, opening doors for further avenues of collaboration between the two organisations. The transaction is another demonstration of the maturity of the Islamic finance industry in general, and QIB in particular, in the provision of credible financial solutions that meet the increasingly complex needs of large corporations such as Qtel.”