Bank of Sharjah is manager of the issuance of sukuks worth $300 million to the Bank of Kuwait
Sharjah, April 28 / WAM / Bank of Sharjah, one of the leading commercial banks in the UAE, announced that it has been selected as a joint lead issue manager and bookrunner, along with other international and regional banks, for the issuance of sukuks worth US$300 million with a term of 5 and a half years for the benefit of Kuwait International Bank ( KIB) as part of the first additional tranche of the capital base, in line with its commitment to strengthen and expand its presence in the local and regional markets.
This deal is the first issuance in US dollars within the first additional tranche of the capital base from the State of Kuwait since 2021, and represents the third issuance by Kuwait International Bank in global capital markets in US dollars. This comes after two successful issuances of sukuks within the first and second tranches of the capital base in 2019 and 2020. respectively.
This deal received great interest from international and regional investors, resulting in coverage of the issue more than doubling, which highlights the great confidence in the solidity and durability of KIB’s fundamentals and its credit tendency in the market. As a result, this issue was priced at a return of 6.625% annually, which is 37.5 basis points lower than the indicative price. The initial announced rate is 7%.
Mohammed Khediri, CEO of Bank of Sharjah, said: We are pleased to play an active role in this issuance for the benefit of Kuwait International Bank, as our participation in this deal reflects Bank of Sharjah’s commitment to providing innovative financing solutions that are in line with the needs of its valued customers. It also demonstrates our competence in leading capital markets deals at the regional level. .
He added: This successful issuance is not only evidence of the ability of Kuwait International Bank to access the sukuk markets effectively, but also reflects the continued confidence that international and regional investors place in the bank’s financial strength and operational performance, even in light of the escalation of geopolitical risks in the region, indicating that this issuance has been priced. A difference of 195 basis points over the US Treasury bond yield, which sets a new standard for the narrowest spread achieved for an issuance within the first additional tranche of the capital base in the Central and Eastern Europe, Middle East and Africa (CEEMEA) region.
Khediri concluded his statement by saying: The success of this deal constitutes a new addition to the record of notable achievements and the rich history of the Bank of Sharjah in providing valuable financing products and services to companies and financial institutions located in the country and abroad. We will continue to make more efforts to continue achieving the strategic objectives of the Bank of Sharjah in order to strengthen and confirm our position as a banking institution. Pioneering and keen to meet the aspirations of its valued customers.
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