Baitak Capital Reaffirms Leadership with Participation in $500 Million International Sukuk Issuance by Kuwait International Bank
Baitak Capital participated as lead manager in the issuance of $500 million in international sukuk for Kuwait International Bank, with oversubscription exceeding 2.4 times.
Translated by Qiyas from الأنباء — Original source
In a new achievement added to its track record in capital markets and Islamic finance, Baitak Capital, the investment arm of Kuwait Finance House, participated as one of the joint global coordinators in the issuance of international sukuk on behalf of Kuwait International Bank, with a value of $500 million USD and a five-year maturity, structured as agency and murabaha sukuk compliant with Islamic Shariah principles.
The issuance witnessed strong demand from regional and international investors, with total orders exceeding $1.2 billion USD, representing an oversubscription ratio of more than 2.4 times the issue size, a clear indicator of the issuance’s attractiveness and investor confidence in the Kuwaiti banking sector as a whole.
Mohammed Hamad Al-Hajeri, Head of Investment Banking Services at Baitak Capital, stated that participation in this issuance reflects the company’s ability to provide Shariah-compliant financing solutions that meet the needs of Kuwaiti financial institutions and align with the requirements of investors in international markets.
Al-Hajeri noted that the strong demand for the issuance underscores the resilience of the Kuwaiti banking sector and investor confidence in Kuwaiti financial institutions, while also highlighting Baitak Capital’s efficiency in managing and executing international issuances and reaching a broad base of investors.
For his part, Khaled Khalil Al-Shami, Senior Vice President of Capital Markets at Baitak Capital, pointed out that the strong oversubscription, which exceeded twice the issue size, confirms the continued interest of international investors in Kuwaiti issuances and the strong presence and attractiveness of Kuwaiti financial institutions in global capital markets.
He added that the diversity of the investor base participating in the issuance, along with the strong demand, reflects Baitak Capital’s ability to connect Kuwaiti issuers with a wide segment of investors in regional and international markets, thereby supporting the success of issuances and enhancing Kuwait’s presence in global Islamic financing markets.
This transaction comes within the framework of Baitak Capital’s continued support for Kuwaiti financial institutions in accessing international debt markets, leveraging its accumulated expertise and extensive relationships with investors across various markets, thereby contributing to providing diverse financing channels for the Kuwaiti financial sector.
The deal also reflects Baitak Capital’s role in developing the sukuk market and Islamic financing instruments, and enhancing the ability of Kuwaiti institutions to capitalize on opportunities available in global capital markets, thereby supporting Kuwait’s position as a regional hub for Islamic finance.
With this achievement, Baitak Capital continues to implement its strategy aimed at expanding its presence in Islamic and international debt markets, through structuring and managing high-quality issuances and providing innovative, Shariah-compliant financing solutions that serve clients and support the development of financial markets.
