Boubyan Bank Receives Approval from Central Bank and Capital Markets Authority to Issue $500 Million Sukuk

Boubyan Bank has received preliminary approval from the Central Bank of Kuwait and the Capital Markets Authority to issue perpetual sukuk as part of the additional tranche of Tier 1 capital, with a value not exceeding $500 million or its equivalent in other currencies.

In a disclosure to the Kuwait Stock Exchange on Wednesday, the bank stated that if the decision is later made to offer, market, and sell these sukuk in Kuwait, a prospectus will be prepared in accordance with the provisions of Law No. 7 of 2010, its executive regulations, and their amendments.

The bank also noted in the same disclosure that it had notified holders of the perpetual sukuk listed under the additional Tier 1 capital tranche, which were previously issued on April 1, 2021, of its intention to redeem them on October 1, 2026, the first redemption date, following the fulfillment of all relevant conditions and procedures and obtaining the required approvals from the concerned authorities.

Boubyan Bank confirmed that it will announce the completion of the redemption process after the first redemption date on October 1, 2026.