Qatar Islamic Bank, the country’s second-largest lender by market value, is considering selling Islamic bonds worth $300 million to refinance existing debt, two bankers said.

The bank has mandated ABN Amro and Standard Chartered Bank to arrange the Islamic bonds, or sukuk, two bankers familiar with the transaction told Reuters, declining to be identified due to privacy regulations.

The bonds would be issued depending on market conditions, although the lender is looking to borrow funds before the end of the year, the bankers said.

Qatar Islamic would denominate the sukuk in US dollars and come to the market in the next few weeks, London-based Meed said in an unsourced report on its website.

The ongoing global credit crunch triggered by defaults on U.S. home loans has prompted several Gulf borrowers to postpone issuances. - Reuters