PRESSR: Bank of Sharjah acts as joint lead manager and bookrunner in a $300mln Sukuk for Kuwait International Bank

Sharjah, UAE – Bank of Sharjah, one of the leading commercial banks in the UAE, reaffirms its commitment to expanding its presence in local, regional and international markets. Accordingly, the Bank has acted as a Joint Lead Manager and Bookrunner in a US$ 300 Million Additional Tier 1 (AT1) 5.5 years Sukuk for Kuwait International Bank (KIB), alongside other international and regional banks.

The transaction represented the first US dollar Additional Tier 1 (AT1) issuance from Kuwait since 2021 and marked Kuwait International Bank's (KIB) third issuance into the US dollar capital markets. This follows the successful launch of an inaugural AT1 Sukuk in 2019 and a Tier 2 Sukuk in 2020. The issuance garnered strong demand, evidenced by order books that peaked at an oversubscription of 2.2x. The robust interest from both international and regional investors underscores KIB's solid market position. The enthusiastic market response enabled KIB to price the issuance at 6.625% p.a., representing a significant tightening of 37.5 basis points from the Initial Price Thoughts (IPTs) of 7.000%.

Upon the successful execution of this transaction, Mr. Mohamed Khadiri, CEO of Bank of Sharjah, commented: "We are extremely pleased to have played a central role in this Sukuk issuance for Kuwait International Bank. Our contribution is a testament to Bank of Sharjah's strategic commitment to deliver innovative debt solutions that cater to our clients' funding needs in the region. It also demonstrates our proficiency in leading Debt Capital Market transactions beyond our home market."

Mr. Khadiri further elaborated: "This successful issuance is not just a testament to KIB's ability to access the Sukuk markets effectively but also reflects the enduring trust that international and regional investors place in the bank's financial resilience and operational performance, even in the face of heightened geopolitical risks in the region. The issuance concluded with an exceptional spread of 195 basis points above US Treasuries, setting a new benchmark for the tightest spread achieved for an AT1 issuance in the Central, Eastern Europe, Middle East and Africa (CEEMEA) region, and it stands as one of the most competitive globally for AT1 issuances."

Concluding his remarks, Mr. Khadiri stated: “This transaction adds to Bank of Sharjah’s impressive track record of providing financing services and advisory to corporate customers and financial institutions locally and across the region. We remain committed to pursuing our strategic objectives, aiming to strengthen our position as a premier banking institution in the Emirate of Sharjah and the UAE, while providing bespoke financing solutions to our customers.”    

About Bank of Sharjah:

Bank of Sharjah was established on December 22, 1973, by Emiree decree issued by H.H. Dr. Sheikh Sultan bin Mohammed Al Qasimi, Member of the Supreme Council Ruler of Sharjah and its Dependencies. Banking operations started in May 1974. The Bank was the first financial institution in Sharjah, the fifth in the Federation and the first to make 40% of its capital available for public subscription.

About Kuwait International Bank:

Kuwait International Bank K.S.C.P. (KIB) was incorporated in Kuwait in 1973 and is regulated by the Central Bank of Kuwait. Since its incorporation, KIB has significantly grown and transformed its strategy from a conventional real estate focused bank, to a full-fledged Islamic bank focusing on digital transformation and offering diversified services to multiple sectors. The Bank offers a full suite of Shari’a compliant services via various business segments such as Wholesale banking which includes Commercial and International Banking, Retail Banking and Treasury, Fund Management and Institutional Banking. The Bank is publicly listed on Kuwait Stock Exchange (Boursa Kuwait) with a market capitalization of USD 821 million as of 31-Dec-23 and is rated "A" by Fitch Ratings with a stable outlook.

© Press Release 2024

Disclaimer: The contents of this press release was provided from an external third party provider. This website is not responsible for, and does not control, such external content. This content is provided on an “as is” and “as available” basis and has not been edited in any way. Neither this website nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this press release.

The press release is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Neither this website nor our affiliates shall be liable for any errors or inaccuracies in the content, or for any actions taken by you in reliance thereon. You expressly agree that your use of the information within this article is at your sole risk.

To the fullest extent permitted by applicable law, this website, its parent company, its subsidiaries, its affiliates and the respective shareholders, directors, officers, employees, agents, advertisers, content providers and licensors will not be liable (jointly or severally) to you for any direct, indirect, consequential, special, incidental, punitive or exemplary damages, including without limitation, lost profits, lost savings and lost revenues, whether in negligence, tort, contract or any other theory of liability, even if the parties have been advised of the possibility or could have foreseen any such damages.