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Boubyan Bank obtains approval for up to $250 m sukuk issuance

by April 30, 2016 General

bbKUWAIT: Boubyan Bank announced that it has completed all the regulatory approvals to issue and market sukuk to strengthen its capital base through additional Common Equity Tier 1 Capital “CET1” instruments as per the instructions of Basel III through a mudaraba structure.

The issuance size is expected to reach $250 million. Boubyan Bank’s Vice Chairman and CEO, Adel Al-Majed, stated that this would be the first sukuk issuance out of Kuwait since 2007, andthe first sukuk issuance for a Kuwaiti Bank with the objective of strengthening its “CET1” capital. He added: “Boubyan Capital, the investment arm of Boubyan Bank, is the global coordinator on this sukuk issuance together with two major international banks, HSBC and Standard Chartered Bank.

In addition, Boubyan Bank has mandated Boubyan Capital, Dubai Islamic Bank, Emirates NBD Capital, HSBC, KFH Capital, National Bank of Kuwait and Standard Chartered Bank as joint lead managers and bookrunners.” Al-Majed emphasized the importance of Boubyan Capital’s role in arranging and managing the sukuk issuance in cooperation with the major international financial institutions. Furthermore, he added that an international roadshow to major financial cities to market the sukuk will follow and includes London, Singapore, Hong Kong, Geneva, Z¸rich, Abu Dhabi and Dubai