Bubiyan signs first Sharia-compliant financing facilities

Boubyan Bank announced the completion of a $300 million, three-year syndicated financing facility compliant with Islamic Sharia principles, led by HSBC and with major participation from Bank of China and Industrial and Commercial Bank of China (ICBC), alongside Islamic Bank of Brunei Darussalam. This move reflects the bank’s growing international presence and its expanding network of relationships with global financial institutions.

This transaction marks the first time a Kuwaiti bank has secured a syndicated Sharia-compliant financing facility with the participation of major Chinese banks. It embodies a key pillar of Boubyan Bank’s strategy to build a more diversified and sustainable international financing platform, based on broadening its network of relationships with global financial institutions, diversifying markets and funders, thereby granting the bank greater flexibility in managing its financing needs and enhancing its capacity to continue supporting growth and expansion plans in the coming period.

The bank’s success in completing this deal comes at a time when global and regional markets are facing increasing geopolitical challenges, fluctuations in global interest rates, and rising levels of uncertainty. This underscores the strength of Boubyan Bank’s financial position and the efficiency of its risk management, while also affirming the standing of the Kuwaiti banking environment among international financial institutions as a reliable partner in cross-border financing operations, thanks to its advanced regulatory frameworks and high governance standards.

In this context, Abdul Salam Al-Saleh, CEO of Boubyan Bank, stated that completing this financing, as the first of its kind for a Kuwaiti bank with major Chinese banks, reflects the progress the bank has made in building its institutional presence beyond the local market and its ability to transform its relationships with global financial institutions into financing partnerships that support its long-term objectives. He noted that diversifying its base of international partners has become an essential part of the bank’s strategy to enhance its growth capacity and capitalize on opportunities offered by global markets.

For his part, Adel Al-Mutairi, Head of the Treasury Group at Boubyan Bank, said that the bank’s financing structure management aims to achieve a balance between the diversity of sources, tenors, and costs, ensuring strong liquidity levels and supporting the bank’s ability to efficiently meet its business needs and future plans. He explained that expanding the geographic and institutional base of funding institutions enhances the bank’s flexibility, particularly amid the rapid transformations occurring in global markets.

Meanwhile, Mohammed Al-Jasser Al-Ghanim, Managing Director of the Corporate Financing and International Financing Group, stated that the significance of this deal extends beyond its size and participating parties, lying in its success in bringing together financial institutions from different markets within a Sharia-compliant financing structure. This reflects the development witnessed by Islamic financing and its ability to attract the interest of global financial institutions, including Chinese banks. He added that the participation of several of the largest Chinese banks in this process strengthens banking relations between financial institutions in Kuwait and Asia, opening the door to new opportunities for cooperation in joint financing, structured financing, and cross-border operations, thereby contributing to broadening business horizons in the coming period.