Kuwait International Bank (KIB) has announced the successful pricing of its inaugural $500 million senior unsecured sukuk issuance, with a five-year tenor, under its $1.5 billion sukuk programme.
This strategic issuance supports the diversification of the Bank’s funding sources and strengthens its long-term funding base. It also reflects investors’ confidence in KIB’s solid financial standing and its growing presence in regional and international capital markets.
The issuance was successfully priced against a backdrop of evolving global market conditions. Strong investor demand enabled KIB to tighten the pricing spread by 30 basis points from the initial price thoughts, resulting in a final spread of 95 basis points over the yield on five-year US Treasury securities and a profit rate of 5.5% per annum.
The issuance attracted strong investor demand from the outset, with the orderbook reaching $1.2 billion, equivalent to 2.4 times the issuance size and reflecting the depth of investor demand for the transaction.
On the successful issuance, KIB Chairman Sheikh Mohammed Jarrah Al Sabah said: "The success of this issuance reflects the confidence of regional and international investors in KIB Group’s strong financial position and clear strategic vision."
The issuance represents a significant milestone in strengthening KIB’s presence in international capital markets and broadening its investor base. It is the bank’s inaugural senior unsecured sukuk issuance under its $1.5 billion sukuk program.
The issuance was assigned a final rating of ‘A’ by Fitch Ratings, in line with the Bank’s ‘A’ Long-Term Issuer Default Rating, with a Stable Outlook.
KIB Vice Chairman and CEO Raed Jawad Bukhamseen said: "The issuance represents a strategic step towards diversifying the Bank’s funding sources and strengthening its long-term funding base."
"It supports the Bank’s sustainable growth plans while maintaining a strong and balanced liquidity position and effective liability management, in line with banking best practices," he added.-TradeArabia News Service
