Qatari property developer Salam Bounian Development Co, a unit of Salam International has sold $137 million of Islamic bonds, or sukuk, to finance a project, one of the arranging banks said on Sunday.


Salam will use the funds to finance a real estate project in the Qatari capital, Doha, Qatar Islamic Bank said in an emailed statement, without giving pricing details.

The bonds received price guidance of 190 basis points over the six-month London Interbank Offered Rate (LIBOR) for the first five years and 310 basis points for the next five, Salam's general manager told Yasser Hamed told Reuters in November.

The bonds will be listed on the Luxembourg stock exchange, Qatar Islamic said.

Islamic bonds are meant to comply with Islam's ban on charging interest and are typically based on physical assets which pay a dividend or rent to bondholders. (Reuters)