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KIB issues $300m AT1 perpetual Sukuk

KIB issues $300m AT1 perpetual Sukuk
This AT1 Sukuk has been issued as an advanced capital instrument
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Mubasher: KIB has issued AT1 perpetual Sukuk at a total value of $300 million under Tier 1 capital as per Basel III and CBK guidelines at an annual profit rate of 5.625%.

This sukuk issue comes as a result of the bank’s outstanding achievements during the past few years, solid financial position, strong credit rating, in line with the well-planned expansionary strategy and its sustainability, chairman of KIB Mohamed Jarrah Al Sabah stated.

“KIB received an immense investor demand as evidenced by a peak orderbook of $4.6 bllion representing an oversubscription rate of over 15 times. This issuance of perpetual Non-Call 5yrs Sukuk, is based on the Islamic Sharia’a principle called “Mudarabah”,” according to a press release on Thursday.

Aiming to maintain appropriate capital adequacy ratio (CAR) level for KIB, this issuance has been arranged with efforts made by a consortium of participating parties including Citi and Standard Chartered which acted as Joint Global Coordinators.

Furthermore, Dubai Islamic Bank, First Abu Dhabi Bank (FAB), KFH Capital, and KAMCO acted as Joint Lead Managers and Bookrunners for this sukuk issue, while Boubyan Bank acted as Co-Manager.

“The weeklong roadshow launched by KIB attracted investors from 26 countries participated in the Sukuk, with final distribution of 51% to the international investors and 49% to the regional investors,” the press release noted.

Vice chairman and CEO of KIB Raed Jawad Bukhamseen commented, “This AT1 Sukuk has been issued as an advanced capital instrument under Basel III Capital Adequacy compliance and in line with the rules and regulations of the Central Bank of Kuwait and the Capital Markets Authority, to be made available for trading in the secondary market once issued. The Sukuk will be listed on Euronext Dublin.”