Salam International

The borrower is identified in the application as Salam International. The supplied financial documents identify the entity as Salam International Investment Limited Q.P.S.C. The legal form, commercial licence, domicile, ownership, incorporation date, principal business activity and purpose of incorporation are not provided in the fact pack. The group name and relationship to any wider group are also not specified, and the account is stated to be a new account to be opened. [Analyst to confirm: full legal name, legal form, licence details, registered domicile, incorporation date, ownership structure, business activity, purpose of incorporation and group structure]. No KYC or constitutional documents have been uploaded. (Source: application form; Source: SIIL Console FS 2025_EN_Signed.pdf, p.3)

No guarantor is identified in the facility request or supplied document pack. Accordingly, no description of a proposed guarantor, its financial capacity, strategy, ownership, relationship with the borrower or proposed guarantee terms can be provided. The audited financial statements disclose that certain borrowings of the borrower are supported by corporate and/or cross-corporate guarantees; however, this disclosure does not establish that any such entity is proposed as guarantor for the requested facility. [Analyst to confirm: whether a guarantor is required; if so, the guarantor’s full legal name, ownership, financial information, relationship with the borrower, guarantee scope, ranking, enforceability and approval requirements].

The proposed transaction comprises a new USD 10,000K Demand Loan, equivalent to QAR 36,500K, to be made available over a two-year availability period and with a stated 25-year tenor. The available information does not describe the proposed fund pool, the underlying investments, the investment mandate, eligible assets, custody arrangements, valuation methodology or whether proceeds will be used for investment, refinancing or another purpose. No Sharia-compliant structure, documentation, asset-backed arrangement or Islamic finance approval is identified in the fact pack. The request is therefore described as a conventional Demand Loan based on the supplied term-sheet terminology, subject to confirmation by the analyst. [Analyst to confirm: transaction structure, source and use of funds, investment portfolio or fund details, custody arrangements, permitted investments and whether any Sharia-compliant structure is intended]. (Source: application form)

The term sheet refers to pledged securities/fund units and specifies an LTV cap of 70%, a top-up trigger of 75% and a liquidation trigger of 85%, with proposed security coverage of 143%. No operating mechanics are provided for establishing or perfecting the pledge, controlling the custody account, valuing the assets, reporting NAV, monitoring concentration or restricting withdrawals and substitutions. Drawdown rules, collateral eligibility, valuation frequency, margin-call timelines, enforcement rights and treatment of market disruption are also not specified. Commitment, management and prepayment fees are indicated at 0.50%, 0.25% and 1.00%, respectively, but the calculation basis and payment dates are not stated. [Analyst to confirm: pledge and custody documentation, eligible collateral, independent valuation/NAV reporting frequency, minimum cushion methodology, top-up and liquidation procedures, permitted withdrawals/substitutions, fee calculation basis and renewal requirements]. (Source: application form)

• Proposed facility: Demand Loan of USD 10,000K, equivalent to QAR 36,500K. (Source: application form)
• Availability period: two years. (Source: application form)
• Tranche booking rules: [Analyst to confirm].
• Minimum and maximum drawdown amounts: [Analyst to confirm].
• Drawdown conditions, including evidence of purpose, collateral perfection, margin availability and account control: [Analyst to confirm].
• FX lending approval: QCB approval is identified as a regulatory prerequisite. (Source: application form)
• Conditions relating to KYC, constitutional documents, bank statements and collateral documentation: [Analyst to confirm].
• Drawdown currency and permitted conversion mechanics: [Analyst to confirm].

• Tenor: 25 years. (Source: application form)
• Facility type: Demand Loan. (Source: application form)
• Interest pricing: 3M SOFR plus an unspecified margin, subject to a stated maximum all-in rate of 0.03%. [Analyst to confirm the margin, rate floor, reset dates and the accuracy of the maximum all-in rate]. (Source: application form)
• Principal repayment schedule: [Analyst to confirm].
• Whether the facility is bullet, amortising or repayable on demand: [Analyst to confirm].
• Interest payment frequency and day-count convention: [Analyst to confirm].
• Mandatory prepayment events, including collateral shortfall, asset disposal, change of control or breach of covenant: [Analyst to confirm].
• Voluntary prepayment is subject to a stated prepayment fee of 1.00%; the fee basis, applicable period and exceptions are not specified. (Source: application form)
• Commitment fee and management fee are stated at 0.50% and 0.25%, respectively; the calculation basis and payment timing remain to be confirmed. (Source: application form)

• Proposed security is stated as pledged securities/fund units, subject to a maximum LTV of 70%, a top-up trigger at 75% and a liquidation trigger at 85% (Source: application form).
• The proposed security coverage is 143% of exposure; this is identified as weak against the stated requirement and should be validated before drawdown (Source: application form).
• The facility terms refer to a demand loan of USD 10,000K, equivalent to QAR 36,500K at the fixed parity of 3.65 (Source: application form).
• [Analyst to confirm: exact securities/fund units, issuer, valuation methodology, liquidity, currency, ownership, existing encumbrances and acceptable margining frequency.]
• [Analyst to confirm: executed pledge, custody/control arrangements, power of attorney, insurance or other supporting security documents.]
• [Analyst to confirm: whether any sponsor, shareholder, corporate or cross-corporate guarantee, negative pledge, asset-sale undertaking or other support is required.]
• The borrower’s investment properties are already mortgaged to a local bank, including investment properties valued at QAR 2,108,000K at 30 June 2026, which may constrain availability of additional asset security (Source: SIIL -HY 2026-English Signed.pdf, p.16).

• Completion and approval of all KYC, customer identification, beneficial ownership and constitutional documentation. No KYC or constitutional document has been uploaded to the credit file (Source: application form).
• Receipt of QCB approval or confirmation of satisfaction of the regulatory prerequisite for FX lending (Source: application form).
• Execution and perfection of the facility agreement, demand loan documentation and all security, custody, pledge and control documents in form and substance satisfactory to the Bank.
• Confirmation that the proposed securities/fund units are eligible collateral, are free from prior encumbrances and support the proposed LTV and security coverage requirements (Source: application form).
• Receipt of satisfactory bank statements and evidence of the borrower’s banking arrangements. No bank statements have been uploaded (Source: application form).
• Receipt of the latest audited financial statements and satisfactory clarification of the borrower’s debt service capacity, material related-party receivables and overdue credit-impaired receivables.
• [Analyst to confirm: required insurance, legal opinions, valuation reports, account-opening documents, tax documentation and any additional conditions required by Legal, Compliance or Operations.]

• Borrower to provide audited annual financial statements within the period required by the Bank after each financial year-end, together with interim financial information at least semi-annually. The latest FY2025 financial statements were audited by KPMG with an unqualified opinion (Source: SIIL Console FS 2025_EN_Signed.pdf, p.3).
• Borrower to provide quarterly management accounts, including statement of financial position, income statement, cash-flow statement, debt schedule, related-party balances and covenant calculations.
• Borrower to provide monthly or otherwise agreed collateral statements showing market value, units held, outstanding exposure, applicable LTV and headroom to the top-up and liquidation triggers (Source: application form).
• Immediate notification of any breach or anticipated breach of financial covenants, payment default, cross-default, material litigation, regulatory action, change in ownership or management, or adverse change in collateral value.
• Periodic confirmation of outstanding guarantees, letters of credit, capital commitments and related-party receivables. At 30 June 2026, these included letters of guarantee of QAR 290,515K, letters of credit of QAR 60,797K and capital commitments of QAR 15,806K (Source: SIIL -HY 2026-English Signed.pdf, p.23).
• [Analyst to confirm: precise reporting deadlines, collateral valuation frequency, approved reporting format and responsible relationship contact.]

• Facility: proposed demand loan of USD 10,000K, equivalent to QAR 36,500K, with a 25-year tenor and two-year availability period (Source: application form).
• Pricing: 3M SOFR plus an unspecified margin, subject to a stated maximum all-in rate of 0.03%; commitment fee 0.50%, management fee 0.25% and prepayment fee 1.00% (Source: application form).
• Governing law: Qatari Law. QCB approval for FX lending is identified as a regulatory prerequisite (Source: application form).
• Audited financial statements to be submitted within [Analyst to confirm: required period] after each financial year-end. The latest audited FY2025 statements were issued with an unqualified KPMG opinion (Source: SIIL Console FS 2025_EN_Signed.pdf, p.3).
• Borrower to maintain adequate reserves and liquidity to meet all obligations. [Analyst to confirm: specific reserves undertaking and minimum liquidity requirement.]
• Standard cross-default, no material adverse change, ownership/control, sanctions, illegality, information and KYC eligibility provisions to apply, subject to Legal and Compliance approval.
• [Analyst to confirm: final risk rating, exact pricing margin, refinance carve-out, approved account structure and any exceptions.]

• [Analyst to confirm: whether a debt service reserve account is required, including the target amount, permitted investments, funding deadline, replenishment mechanics and release conditions.]
• No side letters or undisclosed arrangements affecting repayment, security, ranking or collateral value without the Bank’s prior written consent. [Analyst to confirm whether any side letter exists.]
• If the LTV reaches 75%, the borrower to provide additional eligible collateral or reduce exposure within the agreed cure period; at 85%, the Bank may liquidate collateral in accordance with the finance and security documents (Source: application form).
• The facility to rank at least pari passu with the borrower’s other unsecured and unsubordinated financial indebtedness, subject to mandatory preferential claims and existing secured obligations. [Analyst to confirm: any agreed ranking or structural subordination.]
• Financial covenant levels and testing frequency remain to be documented. The application form records FY2025 DSCR of 0.40x as weak, interest coverage of 2.37x as acceptable and leverage of 1.70x as acceptable (Source: application form).
• [Analyst to confirm: treatment of collateral shortfalls, cure periods, valuation disputes, enforcement costs and application of liquidation proceeds.]

Salam International is identified in the financial statements as Salam International Investment Limited Q.P.S.C. and the FY2025 audited financial statements identify the entity as the borrower (Source: SIIL Console FS 2025_EN_Signed.pdf, p.3). The financial information indicates activities spanning contract revenue, sale of goods, services and real estate revenue. In FY2025, revenue from contracts with customers was QAR 1,752, QAR 114,274K (sic) [Analyst to confirm unit presentation before use], while the extracted financial spread reports total revenue of QAR 1,866,204K (Source: SIIL Console FS 2025_EN_Signed.pdf, p.10; Source: SIIL FS March English 2025.pdf, p.4).

The application identifies the account as a new account to be opened and does not provide the borrower’s licence, domicile, incorporation date, shareholding or ownership narrative (Source: application form). Management profiles and details of directors, beneficial owners and guarantors are also not included.

[Analyst to confirm: licensed activities, ownership and controlling shareholders, group structure, related entities, board and senior management profiles, and rationale for the proposed private banking relationship.]

The available information indicates that the borrower operates across contract-based activities, sale of goods, services and real estate. Revenue from contracts with customers was concentrated in Qatar during 6M 2025, with QAR 669,400K generated in Qatar, representing approximately 80% of revenue from contracts with customers (Source: SIIL Group FS -EN 30 June 2025.pdf, p.23). The luxury retail and distribution segment generated QAR 330,800K of external revenue, approximately 39% of total revenue (Source: SIIL Group FS -EN 30 June 2025.pdf, p.23).

Key identified challenges include exposure to regional economic and geopolitical developments, concentration in investment properties and sensitivity to property valuation assumptions. Investment properties represented approximately 50% of total assets in FY2025, and valuation was identified as a key audit matter (Source: SIIL Console FS 2025_EN_Signed.pdf, p.4). Investment properties valued at QAR 2,108,000K were mortgaged to a local bank at 30 June 2026, limiting unencumbered asset availability (Source: SIIL -HY 2026-English Signed.pdf, p.16).

[Analyst to confirm: detailed sector outlook, competitive position, principal suppliers and customers, regulatory environment, market share and outlook for any guarantor. No guarantor information is provided.]

No account conduct analysis is available because the proposed facility is for a new account to be opened and no bank statements have been uploaded. (Source: application form)

Accordingly, the following matters remain unassessed:

• Account turnover, routing of operating receipts and payment behaviour.
• Frequency and duration of excesses, returned items, unpaid obligations and unauthorised overdrafts.
• Existing banking relationships, utilisation of facilities and repayment conduct.
• Evidence of cash flows available to service the proposed Demand Loan.

The borrower reported FY2025 revenue of QAR 1,866,204 thousand and net profit of QAR 102,343 thousand. However, operating cash flow of QAR 194,653 thousand covered reported FY2025 debt service of approximately QAR 676,999 thousand by approximately 0.29x, indicating that profitability does not, by itself, demonstrate sufficient debt-servicing capacity. (Source: SIIL FS March English 2025.pdf, p.4; Source: SIIL Console FS 2025_EN_Signed.pdf, p.35)

[Analyst to confirm: obtain recent bank statements, conduct commentary, existing lender details and evidence of repayment performance before final committee consideration.]

No QCB report or credit bureau report has been provided in the document pack. Accordingly, no independent confirmation is available regarding the borrower’s or guarantor’s reported facilities, arrears, returned cheques, legal actions, outstanding obligations or credit history.

The financial statements indicate material existing indebtedness. Total debt was QAR 2,269,365 thousand at FY2025 and QAR 2,188,434 thousand at 30 June 2026. The FY2025 accounts also report gross exposures of QAR 480,191 thousand that were more than 730 days past due and classified as credit impaired, with a loss allowance of QAR 204,365 thousand. (Source: SIIL FS Q1-2026 English.pdf, p.4; Source: SIIL Console FS 2025_EN_Signed.pdf, p.81)

[Analyst to confirm: obtain and review current QCB and credit bureau reports for the borrower, guarantor(s), shareholders where relevant and any connected obligors. Any adverse findings, arrears, returned cheques, undisclosed borrowings or contingent obligations should be reconciled to the application and financial statements before the proposal is finalised.]

Primary source

• Repayment is expected to arise from the borrower’s operating cash flows and business receipts. FY2025 operating cash flow was QAR 194,653 thousand; however, reported debt service was approximately QAR 676,999 thousand, resulting in coverage of approximately 0.29x. This represents a material cash-flow mismatch and weakens reliance on operating cash flow as the sole repayment source. (Source: SIIL Console FS 2025_EN_Signed.pdf, p.35)
• The proposed Demand Loan has a 25-year tenor and two-year availability period. [Analyst to confirm: detailed amortisation, repayment schedule, source of balloon repayment and whether repayment is expected from asset monetisation, refinancing or other identified proceeds.] (Source: application form)

Secondary source

• The term sheet refers to pledged securities/fund units, with an LTV cap of 70%, top-up trigger of 75% and liquidation trigger of 85%. The stated security coverage is 143%. (Source: application form)
• No collateral documentation, valuation, custody confirmation, liquidity analysis or evidence of unencumbered ownership has been provided. [Analyst to confirm: collateral composition, enforceability, priority and availability for Ahlibank.]

Pari passu

• [Analyst to confirm: whether the proposed facility will rank pari passu with existing secured or unsecured creditors and whether any negative pledge, intercreditor or subordination arrangements apply.]

• Proposed risk rating: [Analyst to confirm: proposed rating; the application form leaves the proposed and final ratings blank.] (Source: application form)
• Revenue growth and profitability are positive: FY2025 revenue increased by 10.8% and net margin was 5.5%. (Source: application form)
• Liquidity was assessed as satisfactory on the submitted ratio schedule, with a FY2025 current ratio of 1.60x. (Source: application form)
• Leverage remains material: FY2025 leverage was 1.70x and total debt was QAR 2,269,365 thousand against equity of QAR 1,776,035 thousand. (Source: application form; Source: SIIL Console FS 2025_EN_Signed.pdf, p.35)
• Debt-servicing capacity is weak: the submitted FY2025 DSCR is 0.40x, while reported operating cash flow covered debt service by approximately 0.29x. (Source: application form; Source: SIIL Console FS 2025_EN_Signed.pdf, p.35)
• Credit quality is further constrained by material credit-impaired receivables, related-party balances, pledged investment properties and reliance on interim reviewed information for the latest period. (Source: SIIL Console FS 2025_EN_Signed.pdf, pp.60, 81; Source: SIIL -HY 2026-English Signed.pdf, pp.1, 16, 19)
• The proposed rating should therefore reflect strong operating scale but elevated leverage, liquidity/refinancing dependence, weak debt-service coverage and incomplete security and relationship information.

1. The proposal is for a USD 10,000 thousand Demand Loan, equivalent to QAR 36,500 thousand at the fixed parity of 3.65, with a 25-year tenor and two-year availability period. (Source: application form)
2. The borrower demonstrates scale, revenue growth and positive profitability; FY2025 revenue increased by 10.8% and net profit was QAR 102,343 thousand. (Source: application form; Source: SIIL FS March English 2025.pdf, p.4)
3. The principal credit constraint is debt-servicing capacity. FY2025 DSCR is submitted at 0.40x, while operating cash flow covered reported debt service by approximately 0.29x. (Source: application form; Source: SIIL Console FS 2025_EN_Signed.pdf, p.35)
4. The proposal is also subject to material leverage, credit-impaired receivables, related-party exposures, existing secured borrowings and incomplete information on account conduct, bureau checks and collateral. (Source: SIIL Console FS 2025_EN_Signed.pdf, pp.35, 60, 66, 81)
5. Any consideration should be conditional upon satisfactory KYC and constitutional documents, QCB approval for FX lending, current QCB and credit bureau reports, bank statements, audited annual financial statements, acceptable collateral documentation, independent valuation/custody confirmation and confirmation of the repayment and pricing structure. (Source: application form)
6. [Analyst to confirm: guarantor identity, proposed risk rating, final collateral package, pari passu position, repayment schedule and all-in pricing cap.]

The facility is proposed for the Credit Committee’s consideration, subject to satisfactory resolution of the above matters and the imposition of appropriate conditions precedent, covenants and monitoring requirements.

For the latest ten completed financial years (2016–2025), the dividend record is presented below on a post-2019 stock-split basis. Salam International implemented a 10-for-1 share split effective 23 June 2019; accordingly, the 2016 and 2017 historical dividends of QAR 1.00 and QAR 0.80 are shown as QAR 0.10 and QAR 0.08 per current share, respectively (SIIL 2020 Annual Report; MarketScreener dividend history).

The record indicates a substantial reduction from 2016–2017 levels, followed by an apparent multi-year interruption and a gradual resumption from 2023. The increase from QAR 0.03 in 2023 to QAR 0.06 in 2025 is positive, but the overall record remains irregular and should not be interpreted as evidence of a stable or predictable dividend stream. The 2025 dividend was approved on 29 March 2026 and is therefore included by financial year, not declaration date.