Kuwait Finance House Capital participates in Kuwait International Bank's $500 million sukuk issuance

In a new addition to its record in Islamic capital and debt markets, Bayt Capital, the investment arm of Kuwait Finance House (KFH), participated as one of the joint lead managers in the issuance of $500 million in international sukuk for Kuwait International Bank (KIB) with a five-year tenor. The issuance was structured under an agency and murabaha framework compliant with Islamic Sharia principles.

The issuance attracted strong demand from regional and international investors, with orders exceeding $1.2 billion, representing a coverage ratio of more than 2.4 times the issue size. This indicator reflects the attractiveness of the issuance and investor confidence in the Kuwaiti banking sector as a whole.

Mohammed Hamad Al-Hajri, Head of Investment Banking Services at Bayt Capital, stated that participation in this issuance reflects the company’s ability to provide Sharia-compliant financing solutions that meet the needs of Kuwaiti financial institutions and align with the requirements of investors in international markets.

Al-Hajri noted that the strong demand for the issuance confirms the resilience of the Kuwaiti banking sector and investor confidence in Kuwaiti financial institutions. It also reflects Bayt Capital’s efficiency in managing and executing international issuances and reaching a broad investor base.

For his part, Khalid Khalil Al-Shami, Senior Vice President of Capital Markets at Bayt Capital, pointed out that the strong coverage of the issuance, which exceeded twice the issue size, confirms the continued interest of international investors in Kuwaiti issuances and the presence and attractiveness of Kuwaiti financial institutions in international capital markets.

He added that the diversity of the investor base participating in the issuance, alongside the strong demand, reflects Bayt Capital’s ability to connect Kuwaiti issuers with a wide range of investors in regional and international markets, thereby supporting the success of issuances and enhancing Kuwait’s presence in global Islamic finance markets.

This transaction comes as part of Bayt 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, which contributes to providing diverse financing channels for the Kuwaiti financial sector.

The transaction also reflects the role played by Bayt Capital in developing the sukuk and Islamic finance instruments market, and in enhancing the ability of Kuwaiti institutions to benefit from opportunities available in global capital markets, thereby supporting Kuwait’s position as a regional hub for Islamic finance.

With this achievement, Bayt Capital continues to execute its strategy aimed at expanding its presence in Islamic and international debt markets by arranging and managing high-quality issuances and providing innovative, Sharia-compliant financing solutions that serve clients and support the development of financial markets.