Kuwait's Boubyan Bank issues mandate for USD senior unsecured 5-year sukuk
Kuwait's Boubyan Bank is looking to raise funds as it issues a mandate for a dollar-denominated senior unsecured 5-year sukuk, with a fixed rate coupon, paid semi-annually.
The issuance is rated A by Fitch, in line with the lender's rating by Fitch and S&P, and A2 by Moody's.
Banks tapped include Standard Chartered, HSBC, and Citi Bank, which have been appointed global coordinators on the issuance.
Arab Banking Corporation, Boubyan Capital Investment Company, KFH Capital Investment Company, Warba Bank, KIB Invest, Dubai Islamic Bank, SMBC Bank International, The Islamic Corporation for the Development of the Private Sector, along with Standard Chartered, HSBC, and Citi Bank have been appointed joint lead managers.
The Wakala / Murabaha structure will be issued under Boubyan's $3 billion Trust Certificate Issuance Programme and will trade on Euronext Dublin.
Boubyan said the issuance will have a positive impact on its liquidity position and diversifying the sources of long-term funding.
In March 2022, the lender, which is 59.9% owned by National Bank of Kuwait, issued a $500 million 5-year sukuk in a deal that was less than two times covered.
More recently, Boubyan Bank was involved in merger talks with Kuwait's Gulf Bank, which was called off in January of this year following the disclosure that a major shareholder, Alghanim Trading, would divest its entire 32.7% stake in Gulf Bank to Kuwait's Warba Bank.
(Writing by Bindu Rai, editing by Seban Scaria)
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