NBK marks milestone with $800 million Additional Tier 1 bond listing on LSE
KUWAIT: National Bank of Kuwait (NBK) celebrated the listing of its $800 million Additional Tier 1 bond on the London Stock Exchange. This milestone highlights the Bank's strong and growing presence in global capital markets and reaffirms NBK's expansive global footprint, with a branch network spanning four continents across 13 countries. Among its key international markets, London holds strategic importance through National Bank of Kuwait (International) PLC (NBK- London), which delivers a full spectrum of banking products and services to its clientele.
The listing ceremony took place at the London Stock Exchange — one of the world's leading financial marketplaces — with the participation of senior executives from NBK and NBKI (NBK-London). Leading the occasion were Zaid Al-Sager, Deputy CEO – International Banking Group at NBK; Meshari Bin Salamah, EVP - Global Head of Corporate Banking and Commercial Real Estate and Bassem Boustany, Managing Director of National Bank of Kuwait, London (NBK International) and Abdul Amir Fadel EVP - Global Head of Consumer Banking – IBG.
The event underscores the bank's strategic commitment to diversifying its funding base and reinforcing its footprint across international capital markets. The listing of the bonds on the London Stock Exchange reinforces NBK's ongoing commitment to deepening its long-standing relationships with leading global exchanges. It also reflects the growing confidence in the Bank's robust credit profile, as demonstrated by the consistently strong demand for its debt issuances across international markets.
LONDON: During the celebration of National Bank of Kuwait (NBK)'s listing of its $800 million Additional Tier 1 bond on the London Stock Exchange.
The successful issuance and listing of the bonds on the London Stock Exchange underscores NBK's leadership in the regional banking landscape and reflects its strategic vision for global expansion. It is a testament to the Bank's long-standing legacy of excellence, innovation and prudent growth. This issuance marks the bank's largest to date under this tranche, driven by robust investor demand that enabled an upsizing beyond initial expectations.
Following a brief pause in GCC bond activity within the first tranche of additional capital — after a wave of issuances in May — NBK's transaction drew robust interest from a globally diversified investor base. Investor appetite for the issuance was exceptionally strong, with subscription orders reaching $2.2 billion, representing a 2.75x oversubscription rate. Demand was driven by a broad and diversified base of global investors and financial institutions, with private banking platforms playing a pivotal role in the placement process. The results underscore investor confidence in NBK's robust credit profile and reaffirm Kuwait's standing as an appealing investment destination. MENA-based investors represented the largest share of the allocation, accounting for 47 percent of total demand, followed by investors from the United Kingdom at 19 percent, the United States at 18 percent, Europe at 13 percent, and Asia at 3 percent. By investor type, asset managers and investment funds accounted for 48 percent of total demand, followed by banks and private banking services at 44 percent, while sovereign entities, insurance companies, and pension funds represented the remaining 8 percent of total subscription applications. Robust investor demand enabled NBK to achieve highly favorable pricing for the issuance, with the final yield set at 6.375 percent ( percent (equivalent to UST+240.3bps), representing a 50 basis point tightening from the initial price thoughts (IPTs) of 6.875 percent.
The investment-grade credit rating of the issuance, including a Baa3 rating from Moody's, further enhanced its appeal — driving strong interest from international private banking platforms and global asset managers. Citigroup, JP Morgan, HSBC, and Standard Chartered acted as Global Coordinators for the issuance, while the Joint Lead Managers included Citigroup, JP Morgan, HSBC, Standard Chartered, First Abu Dhabi Bank, Emirates NBD, Abu Dhabi Commercial Bank, KAMCO Investment Company, and National Bank of Kuwait.
•The listing underscores NBK's deep-rooted relationship with one of the world's most prominent stock exchanges
• Robust investor appetite reflects global confidence in NBK's strong credit fundamentals and regional leadership
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