QIB Contributes $500 Million of Project Finance Towards Barzan Project

Doha, December 26 (QNA) - Qatar Islamic Bank (QIB) on Monday announced its participation in the current biggest financing operation in the energy sector carried out by Qatar Petroleum, by offering $500 million to finance the Barzan Gas Project through Istisna/Ijara instrument. The amount committed by QIB through the Sharia -compliant Istisna/Ijara investment vehicle constitutes the largest ticket of the Islamic financing tranche in the project, which amounted to an overall total of $850 million, a press release issued by the QIB today said. The acting CEO of QIB Ahmad Meshari, commented, "QIB is proud to be part of the financing of a project of such scale and significance to the continued development of the State of Qatar. QIB s participation and level of commitment signifies the strategic partnership view that QIB takes in terms of Qatar Petroleum s ongoing projects, which will assist in strengthening the relationship between the Islamic banks and the country s energy sector, a sector which is obviously of crucial importance to the Qatari economy, Meshari added. "The level of competition between the international and regional financial institutions to supply financing for this project is a reflection of the strength of the Qatari economy and confirms the robust nature of the Qatari investment climate, and its inherent capability to attract investments and provide excellent prospects for business growth," Meshari noted. The participation of local Islamic Banks in the biggest oil and gas financing of the $10.4 billion Barzan Project is the largest in Qatar Petroleum s history, particularly with regard to that part of the finance package coming from Sharia -compliant sources. It is anticipated that the first production line of the project will commence in 2014, while the completion of the second production line is expected the following year. The Barzan Project, through its ambition and scale, is indicative of the strength and resilience of the Qatari economy especially in the context of the current status of the global economy. The project aimed at meeting growing domestic energy needs is of a paramount importance to the country s development and sustainable growth objectives and the successful conclusion of the financing process marks a hugely important milestone.(QNA)