Kuwait Bourse: Activation of Fixed Income Market with Listing of KFH Sukuk Worth KD 200 Million

Kuwait City, 10 Nov (KUNA) -- The Kuwait Stock Exchange activated its fixed-income market by listing Kuwait Finance House (KFH) sukuk worth 200 million Kuwaiti dinars (approximately $616 million USD) under the ticker symbol “KFH Tier 1 Tranche 3” in the first listing on the fixed-income platform (bonds and sukuk).

In a press release on Tuesday, the exchange said this achievement inaugurates a new asset class in the bourse and reinforces its role as an operator and developer of the Kuwaiti capital market by providing a market infrastructure that enables institutions to list their financing and capital instruments and connects them with investors seeking opportunities.

It added that the listing represents a practical step in the exchange’s strategy to transform into a multi-asset market where equities and fixed-income instruments complement each other to serve the needs of the national economy, thereby enhancing institutions’ ability to diversify funding sources and providing broader options to support their investment and expansion plans.

The listing enables investors to access instruments that differ in their rights, distributions, and structures, thereby strengthening their ability to diversify investment portfolios and choose tools that align with their investment orientations.

It noted that the listing follows approval by the Capital Markets Authority, based on a recommendation from the Kuwait Stock Exchange, after meeting the regulatory requirements for the listing, trading, and disclosure of bonds and sukuk in accordance with approved supervisory and operational frameworks.

The statement said that the Kuwait Finance House sukuk fall under the additional first tranche of capital and are perpetual profit-sharing sukuk compliant with Islamic Shariah principles, with an initial profit distribution rate of 5.5 percent annually and semi-annual distributions according to the issuance terms.

Quoting the statement, Kuwait Stock Exchange Chairman Badr Al-Kharafi said that with this listing, the bourse has activated a new asset class in the Kuwaiti capital market and consolidated its role in leading the transition to a multi-asset market, establishing a new pathway that links capital with investment opportunities.

Al-Kharafi added that the Kuwait Stock Exchange is also investing in developing the capital market to enhance the economy’s growth capacity and enable institutions to access financing instruments that support their projects and investment plans. Its strategy is based on building a market that keeps pace with business needs and stimulates the deployment of capital into productive investments, thereby boosting the private sector’s contribution to economic diversification.

For his part, Kuwait Finance House Group Chairman Hamad Al-Marzouq said, according to the statement, that the listing and trading of the sukuk represent a historic achievement and an unprecedented development in the Kuwaiti capital market.

Al-Marzouq added that this listing is an extension of the group’s expertise and leadership in issuing sukuk and its commitment to developing Shariah-compliant capital instruments that respond to financing and investment needs.

He clarified that the listing allows these instruments to be utilized locally, leveraging such expertise to build a market that responds to the actual needs of financing and investment, expressing hope that this participation will encourage institutions to consider using sukuk within their plans and enhance integration between the banking sector and the capital market, thereby supporting the competitiveness of the Kuwaiti financial sector.

For his part, Kuwait Stock Exchange CEO Mohammed Al-Asimi said, according to the statement, that the exchange focused on preparing the systems and listing and trading procedures, taking into account the nature of these instruments, and allocating an independent trading board for them, while coordinating with the Kuwait Clearing Company regarding clearing and settlement services and with brokers to facilitate trading.

Al-Asimi clarified that data on listed instruments and their associated disclosures are of fundamental importance to the operation of this market, given the differing distribution schedules, redemption terms, and other characteristics of each issuance. The authority works to make information available through approved channels and to support relevant entities in understanding and complying with continuous disclosure requirements. He revealed that future efforts will focus on facilitating the readiness of entities seeking listing by engaging in direct communication with issuers, their advisors, and issue managers, clarifying relevant documents, requirements, and procedures. This will enable the resolution of technical inquiries prior to the submission of applications and help organize the transition of the issuance to the listing phase and its subsequent obligations.

For his part, Khaled Al-Shamlan, Chief Executive Officer of Kuwait Finance House, stated that listing provides investors with a new asset class alongside equities and traded real estate investment funds, thereby enhancing investment diversification, raising liquidity levels, and contributing to more efficient risk management. He added that listing embodies the integration of roles between Kuwait Finance House, as the issuer and arranger of Islamic capital market instruments, and the Kuwait Stock Exchange, as an organized platform for trading, disclosure, and market development. This synergy enhances the attractiveness of the local market and provides broader opportunities for investors and institutions. (End) M.K.A. / A.M.H.