Bubiyan signs first Sharia-compliant syndicated financing facility deal
Boubyan Bank announced the completion of a $300 million Sharia-compliant syndicated financing facility with a tenor of three years, led by HSBC and with major participation from Bank of China and Industrial and Commercial Bank of China (ICBC), alongside Islamic Bank of Brunei Darussalam. This move reflects the bank’s growing international presence and its expanding network of relationships with global financial institutions.
This transaction marks the first time a Kuwaiti bank has secured a Sharia-compliant syndicated financing facility with the participation of major Chinese banks. It embodies a key pillar of Boubyan Bank’s strategy to build a more diversified and sustainable international financing platform, based on broadening its network of relationships with global financial institutions, diversifying markets and funders, thereby granting the bank greater flexibility in managing its financing needs and enhancing its capacity to continue supporting growth and expansion plans in the coming period.
The bank’s success in completing this deal comes at a time when global and regional markets are facing increasing geopolitical challenges, fluctuations in global interest rates, and rising levels of uncertainty. This underscores the strength of Boubyan Bank’s financial position and its risk management efficiency, while also affirming the standing of the Kuwaiti banking environment among international financial institutions as a reliable partner in cross-border financing operations, thanks to its advanced regulatory frameworks and high governance standards.
In this context, Abdul Salam Al-Saleh, CEO of Boubyan Bank, stated that completing this financing, as the first deal of its kind for a Kuwaiti bank involving major Chinese banks in a Sharia-compliant syndicated facility, reflects the progress the bank has made in building its institutional presence beyond the local market, and its ability to transform its relationships with global financial institutions into financing partnerships that support its long-term objectives. He noted that diversifying the base of international partners has become an essential part of the bank’s strategy to enhance its growth capacity and capitalize on opportunities offered by global markets.
He clarified that the participation of leading Chinese banks in this deal, led by a global bank such as HSBC, alongside Asian and international financial institutions, carries implications that go beyond the financing process itself. It reflects the growing global interest in the Islamic financing model and confirms the ability of Kuwaiti banking institutions to build deeper financial ties with major Asian economies. It also highlights Boubyan’s strong financial position and advanced institutional standards, which qualify it to operate in cross-border deals that meet the needs of both financial institutions and investors, thereby contributing to opening new horizons for financial and investment cooperation between the two sides.
Al-Saleh added, “We view this deal as a foundation for expanding our international cooperation network and developing banking relationships that can be built upon in the areas of financing, investment, and joint operations in the coming years.” He emphasized that Boubyan will continue to leverage its position and expertise in Islamic banking to develop financing partnerships that keep pace with global economic transformations, support sustainable growth, and enhance its role as a Kuwaiti banking institution with a growing regional and international presence.
For his part, Adel Al-Mutairi, Head of the Treasury Group at Bank Boubyan, stated that the bank’s funding structure management is based on achieving a balance between the diversity of sources, maturities, and costs, thereby ensuring strong liquidity levels and supporting the bank’s ability to efficiently meet its operational needs and future plans. He explained that expanding the geographic and institutional base of funding partners enhances the bank’s resilience, particularly amid the rapid transformations currently reshaping global markets.
Al-Mutairi noted that executing financing with participation from financial institutions across different markets provides the bank with an additional channel for medium- and long-term funding, granting it greater flexibility in managing liabilities and distributing maturity profiles. This approach aligns with the bank’s asset growth and evolving business requirements. It also strengthens the Treasury Group’s capacity to flexibly navigate fluctuations in liquidity and yields in money and capital markets, while maintaining a balanced strategy that combines cost efficiency with hedging against yield volatility.
He added that the success of this transaction underscores Boubyan’s ability to access a broader base of international financial institutions and execute syndicated financing deals compliant with Islamic Sharia principles and aligned with global market standards. He affirmed that the Treasury Group will continue diversifying funding sources and instruments, leveraging opportunities in regional and international markets to bolster the bank’s financial strength and provide a stable, sustainable funding base to support its growth plans.
For his part, Mohammed Al-Jasr Al-Ghanim, General Manager of Corporate Financing and International Financing at Boubyan, emphasized that the significance of this transaction extends beyond its size and the parties involved. Its success lies in bringing together financial institutions from diverse markets within a financing structure compliant with Islamic Sharia, reflecting the development of Islamic finance and its ability to attract interest from global financial institutions, including Chinese banks.
He added that the participation of several major Chinese banks in this transaction strengthens banking relations between financial institutions in Kuwait and Asia, opening doors to new opportunities for cooperation in areas such as syndicated financing, structured finance, and cross-border operations, thereby expanding business prospects in the coming period.
Al-Jasr clarified that Bank Boubyan continues to enhance its presence in international financing by building institutional partnerships based on expertise and the capability to execute sophisticated financing structures that meet the needs of various stakeholders. He confirmed that this transaction marks the beginning of a broader path of cooperation with international financial institutions, supporting the bank’s strategy to solidify its position as a regional banking partner with advanced capabilities in structuring and implementing Islamic financing solutions.
