Qatar First Bank has announced the “successful exit” of a Shariah-compliant aviation deal, along with its investors, through the sale of two Boeing 737-900ER aircraft.
This comes in line with the bank strategy and directive of offering international co-investment opportunities to its clients and to the Qatari market.
The two aircraft were on a seven-year long-term Shariah-compliant lease contract to Indonesia’s Lion Air. This is the first deal of its kind that the bank is undertaking in the field of aviation through the global investment management platform that the bank launched and attracts increased opportunities for its clients and investors.
The investment product has achieved for its holders a cash dividend of 9% annually, whereby the profits are distributed every three months, while the internal return on investment of the product is about 12%, QFB noted.
On the success of the exit deals, QFB deputy CEO Ayman Zaidan said, “We are very pleased to announce the successful exit of these deals further strengthening the bank’s Investment offerings to its clients and solidifying the bank’s strategy and risk-sharing operating model.
“The bank will continue to build on this success through offering innovative financial solutions and Shariah-compliant investments to the Qatari market. Further, it is noteworthy the increasing success of investment structured products offered by the bank to meet the increasing need of its investors looking for innovative investment opportunities.
“The products of the bank meet with great acceptance from potential investors as it provides investment opportunities in business sectors characterised by relative stability, as they provide attractive and expected returns in the medium and long term, and with a proportionate annual profit rate paid to clients on a quarterly basis.”
QFB is the first independent Shariah-compliant bank authorised by the QFC Regulatory Authority (QFCRA) and a listed entity on the Qatar Stock Exchange.