Latest news with #BoubyanBank
Zawya
3 days ago
- Business
- Zawya
Kuwaiti lender Boubyan prices $500mln 5-year sukuk
Kuwait's Boubyan Bank priced its $500 million senior unsecured Reg S 5-year sukuk at 4.973% with fixed, semi-annual, 30/360 coupon. The books came in at $1.7 billion, excluding JLM interest. Earlier, the Kuwaiti lender had a spread set at CT5+95bps, with the initial price guidance in the area of T+130bps. The issuance is rated A by Fitch, in line with the lender's rating by Fitch and S&P, and A2 by Moody's. The maturity date is June 4, 2030. Banks mandated 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 structure comes under Boubyan's $3 billion Trust Certificate Issuance Programme and will trade on Euronext Dublin. (Writing by Bindu Rai, editing by Daniel Luiz)
Zawya
3 days ago
- Business
- Zawya
Kuwait's Boubyan Bank launches $500mln senior unsecured 5-year sukuk
Kuwait's Boubyan Bank has launched its $500 million senior unsecured Reg S 5-year sukuk, with a spread set at CT5+95bps. The initial price guidance came in the area of T+130bps. The order book is $1.7 billion, excluding JLM interest. The issuance is rated A by Fitch, in line with the lender's rating by Fitch and S&P, and A2 by Moody's. The Wakala / Murabaha structure has a fixed rate coupon, paid semi-annually. The settlement date is June 4. Banks mandated 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 structure will be issued under Boubyan's $3 billion Trust Certificate Issuance Programme and will trade on Euronext Dublin. (Writing by Bindu Rai, editing by Seban Scaria)
Zawya
4 days ago
- Business
- Zawya
Boubyan Bank US$ 5year sukuk IPTs T+130bp area: IFR
Boubyan Bank is marketing a US dollar five-year sukuk at initial price guidance of Treasuries plus 130bp area. Boubyan Sukuk is the issuer and Boubyan Bank the obligor. The Reg S senior deal will be rated A by Fitch. The obligor, rated A2/A/A, is 60.4% owned by National Bank of Kuwait. Citigroup, HSBC and Standard Chartered Bank are joint global coordinators, as well as lead managers with Bank ABC, Boubyan Capital, Dubai Islamic Bank, KFH Capital, KIB Invest, SMBC, The Islamic Corporation for the Development of the Private Sector and Warba Bank.
Zawya
5 days ago
- Business
- Zawya
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)
Zawya
6 days ago
- Business
- Zawya
Kuwaiti lenders Gulf Bank and Warba Bank exploring potential merger
Kuwait's Gulf Bank and Warba Bank are exploring a potential merger which could lead to the creation of one of the largest Shariah compliant banks in the Gulf country. Warba Bank, which is Gulf Bank's largest shareholder with a stake of 32.75%, initiated talks for a feasibility of a potential merger between the banks, which was later approved by the Gulf Bank board. Warba Bank said the potential merger would enhance 'competitiveness in the local Islamic banking sector.' This is the third merger discussion involving Gulf Bank, with a potential merger with Kuwaiti lender Boubyan Bank called off in January following the disclosure that shareholder, Alghanim Trading, would divest its entire 32.75% stake in GBK to Kuwait's Warba Bank for 498.2 million Kuwaiti dinars ($1.61 billion). In July 2023, Gulf Bank and Al Ahli Bank of Kuwait announced they were no longer pursuing a merger, following the completion of feasibility studies by consulting companies they appointed in December 2022. A merger between Gulf Bank and Warba Bank would create the third largest financial institution after KFH and NBK, with total assets reaching KWD13 billion. The feasibility study aligns with a Fitch Ratings forecast last month, with Redmond Ramsdale, the Head of Middle East Bank Ratings and Islamic Banking, telling Zawya Islamic bank mergers and acquisitions are expected to rise in the GCC in the short to medium term, driven by the search for competitive advantage to access growth opportunities and build low-cost deposits. 'The region is over-banked, and therefore we expect consolidation to continue in all countries,' Ramsdale said. A Gulf Bank-Warba Bank merger would potentially be the second significant M&A event in the GCC involving major lenders, with the UAE's Emirates NBD initiating a mandatory cash offer in March to acquire the remaining 0.11% stake in the Dubai-listed Emirates Islamic Bank (EIB) at 11.95 UAE dirhams per share, totalling approximately 69.8 million UAE dirhams. (Writing by Bindu Rai, editing by Brinda Darasha)
