KIB successfully prices its first issuance of $500 million in unsecured senior sukuk with a five-year maturity
Kuwait International Bank (KIB) announced the successful pricing of its first issuance of unsecured senior sukuk worth $500 million with a five-year maturity, as part of a $1.5 billion sukuk issuance program. The issuance represents a strategic step in diversifying funding sources and strengthening the bank’s long-term funding base, while also reflecting investors’ confidence in its financial strength and its presence in regional and international capital markets.
The successful issuance came amid a changing global market environment, where strong demand helped narrow the pricing margin by 30 basis points compared to initial indicative pricing, bringing the final margin to 95 basis points over the yield on five-year U.S. Treasury bonds, at an annual profit rate of 5.502%.
The issuance attracted strong investor demand from its launch, with total orders reaching approximately $1.2 billion, equivalent to 2.4 times the size of the issuance, reflecting deep demand for the offering.
Commenting on the success of the issuance, Sheikh Mohammed Jaraah Al-Sabah, Chairman of the Board of Directors at KIB, said: “The success of this issuance reflects the confidence of regional and international investors in the financial strength and clear strategic direction of the KIB Group.”
He added that this issuance marks an important milestone in enhancing KIB’s presence in international capital markets and expanding its investor base, as it is the first issuance of unsecured senior sukuk by the bank, under the $1.5 billion sukuk issuance program.
The issuance received a final credit rating of “A” from Fitch Ratings, consistent with the bank’s long-term rating of “A” with a stable outlook.
For his part, Raed Jawad Bu-Khamseen, Vice Chairman and Chief Executive Officer at KIB, said: “The issuance represents a strategic step in diversifying funding sources and strengthening the bank’s long-term funding base, supporting sustainable growth plans and maintaining a strong and balanced liquidity position, as well as effective liability management in line with best banking practices.”
He added: “The issuance follows a structure combining Wakalah/Murabaha, with a five-year maturity, where Sharia-compliant financing instruments (sukuk) are gaining increasing importance among financial institutions and investors. The issuance will be settled on September 10, 2026, and the sukuk will be listed on the International Securities Market of the London Stock Exchange, with the sukuk maturing on September 10, 2031.”
He praised the vital role of partners who contributed to the success of this issuance. Citigroup Global Markets Limited and Standard Chartered Bank served as Global Coordinators, while ASB Capital, Bank Boubyan, Citibank, Emirates NBD Capital, Bitex Capital, Al-Dawli Invest, Islamic Bank of Sharjah, Standard Chartered Bank, Warba Bank, Arab Banking Corporation, The Arab Bank, and QNB Capital acted as Joint Lead Managers and Bookrunners.
