KIB successfully prices its first issuance of unsecured senior instruments

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 the bank’s financial strength and its presence in regional and international capital markets.

The successful issuance came amid a changing global market environment. Strong demand helped narrow the pricing spread by 30 basis points compared to the initial indicative pricing, bringing the final spread to 95 basis points over the yield on five-year U.S. Treasury bonds, with 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, underscoring the depth of demand.

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. This issuance marks an important milestone in enhancing KIB’s presence in international capital markets and expanding its investor base, as it is the bank’s first issuance of unsecured senior sukuk under the $1.5 billion sukuk 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.

Speaking on the issuance, Raed Jwad Buhamseen, 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, along with effective liability management in line with best banking practices.”

He added: “The issuance was structured using a Wakalah/Murabaha framework for a five-year tenor, reflecting the growing importance of Sharia-compliant financing instruments among financial institutions and investors.”

The issuance will settle on September 10, 2026, and the sukuk will be listed on the International Securities Market of the London Stock Exchange. The sukuk will mature on September 10, 2031.

Buhamseen praised the vital role of the partners who contributed to the success of the issuance. Citigroup Global Markets Limited and Standard Chartered Bank served as Global Coordinators, while AB Capital, Bank Boubyan, Citibank, Emirates NBD Capital, Baitak 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.

About KIB

Kuwait International Bank (KIB) is an Islamic bank headquartered in the State of Kuwait. Established in 1973, it was initially known as the Kuwait Real Estate Bank before transitioning to an Islamic bank in 2007. In 2018, KIB embarked on a new chapter in its journey of development and transformation through its new strategy focused on delivering a superior customer experience under the slogan “Bank for Life.”

Through its branch network spread across Kuwait, KIB offers a diverse and comprehensive range of banking products and services, along with innovative digital solutions that align with international best practices. In line with its national mission, KIB provides a leading corporate social responsibility program aimed at positively impacting society and its individuals through a wide range of purposeful initiatives and activities. Today, KIB is steadily advancing in the implementation phase of its strategic objectives, having solidified its role as a key player in the Kuwaiti banking sector. It has consistently maintained its strong financial position and outstanding performance, earning international recognition due to its robust credit rating and solid financial standing.