SHARJAH: Bank of Sharjah 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 percent p.a., representing a significant tightening of 37.5 basis points from the Initial Price Thoughts (IPTs) of 7.000 percent.
Upon the successful execution of this transaction, Mohamed Khadiri, CEO of Bank of Sharj
ah, 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.’
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 com
petitive globally for AT1 issuances.’
Concluding his remarks, 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.’
Source: Emirates News Agency