Bayt Capital Participates in KIB Sukuk Issuance
Bayt Capital participates as lead manager in the issuance of $500 million in international sukuk for Kuwait International Bank, with strong coverage.
Translated by Qiyas from الجريدة — Original source
In a new achievement added to its track record in Islamic capital and debt markets, Baitak Capital—the investment arm of Kuwait Finance House (KFH)—participated as one of the joint global coordinators in issuing international sukuk on behalf of Kuwait International Bank (KIB) for $500 million over a five-year term, 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, representing an oversubscription of more than 2.4 times the issue size, a clear indicator of the offering’s attractiveness and investor confidence in the Kuwaiti banking sector as a whole.
Mohammed Al-Hajjar, 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 while aligning with the requirements of investors in international markets.
Al-Hajjar 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 offerings and reaching a broad base of investors.
For his part, Khaled Al-Shami, Senior Vice President of Capital Markets at Baitak Capital, said 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 appeal 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 range of investors in regional and international markets, thereby supporting the success of the offerings and enhancing Kuwait’s presence in global Islamic financing markets.
This transaction comes as part of Baitak Capital’s ongoing efforts to support Kuwaiti financial institutions in accessing international debt markets, leveraging its accumulated expertise and extensive investor relationships 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 strengthening the ability of Kuwaiti institutions to capitalize on opportunities 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 to expand its presence in Islamic and international debt markets by arranging and managing high-quality issuances and providing innovative, Shariah-compliant financing solutions that serve clients and support the development of financial markets.
