Doha: Kuwait Finance House (KFH) has successfully issued a USD 850 million additional tier 1 Mudaraba Sukuk.
According to Kuwait News Agency, the issuance witnessed significant demand, with subscription orders exceeding USD 1.7 billion, surpassing twice the issue size, and an annual yield of 6.25 percent. This marks the issuance as the largest of its kind in Kuwait.
KFH's Chief Treasury Officer - Kuwait, Ahmad Al-Sumait, stated that the issuance aligns with KFH's strategy to bolster its capital base and diversify funding. This initiative aims to enhance the bank's capacity to finance key developmental projects in Kuwait, especially in infrastructure and energy, while facilitating client expansion both regionally and globally. The perpetual Sukuk, with a maturity of 5.5 years, is set to be listed on the London Stock Exchange.
Al-Sumait further noted that the swift completion of the transaction indicates strong regional and international investor confidence in KFH, highlighting the bank's stable financial position, strong credit profile, and efficient operations. KFH is recognized as the largest bank in Kuwait's private sector by market capitalization and profitability.
Khalid Al-Rukhayes, Deputy General Manager of Global Markets Trading and Investments at KFH, remarked that demand primarily came from banks, financial institutions, and investment funds across the Middle East, Europe, and Asia. This widespread interest reaffirms KFH's reputation as a leading financial institution in the region. The issuance also enhances KFH's capital adequacy ratios, reflecting global confidence in the bank's credit standing.
Al-Rukhayes also emphasized the role of Sukuk as an effective Islamic financing tool that is vital for advancing global capital markets and supporting corporate growth and expansion into new sectors. KFH Capital Investment Company played a pivotal role as the global coordinator and joint bookrunner for the issuance, working alongside major international financial institutions, thus reinforcing its status as a key player in structuring Sukuk at both regional and global levels.