Bayt Al Capital Participates in Issuance of KIB Sukuk Worth $500 Million

In a new achievement added to its track record in capital markets and Islamic finance, Baitak Capital, the investment arm of Kuwait Finance House, participated as one of the joint global coordinators in the issuance of international sukuk on behalf of International Bank Kuwait, valued at $500 million USD for a five-year tenor, structured in compliance with Shariah principles using an agency and murabaha sukuk framework. The issuance witnessed strong demand from regional and international investors, with total subscriptions exceeding $1.2 billion USD, representing an oversubscription ratio of more than 2.4 times the issue size, a clear indicator of the offering’s attractiveness and investor confidence in the Kuwaiti banking sector as a whole.

Mohammed Hamad Al-Hajeri, Head of Investment Banking Services at Baitak Capital, stated that the company’s participation in this issuance reflects its ability to provide Shariah-compliant financing solutions that meet the needs of Kuwaiti financial institutions and align with the requirements of investors in international markets. Al-Hajeri noted that the strong demand for the issuance underscores the resilience of the Kuwaiti banking sector and investor confidence in Kuwaiti financial institutions, while also highlighting Baitak Capital’s efficiency in managing and executing international offerings and reaching a broad base of investors.

For his part, Khaled Khalil Al-Shami, Senior Vice President of Capital Markets at Baitak Capital, pointed out that the strong oversubscription, which more than doubled the issue size, confirms the continued interest of international investors in Kuwaiti issuances and the strong presence and appeal of Kuwaiti financial institutions in global capital markets. He added that the diversity of the investor base, alongside the strong demand, reflects Baitak Capital’s ability to connect Kuwaiti issuers with a wide segment of investors in regional and international markets, thereby supporting the success of issuances and enhancing Kuwait’s presence in global Islamic financing markets.

This transaction comes as part of Baitak Capital’s ongoing efforts to support Kuwaiti financial institutions in accessing international debt markets, leveraging its accumulated expertise and extensive relationships with investors across various markets, thereby contributing to providing diverse financing channels for the Kuwaiti financial sector. The deal also reflects Baitak Capital’s role in developing the sukuk market and Islamic financing instruments, and strengthening the ability of Kuwaiti institutions to capitalize on opportunities in global capital markets, thereby supporting Kuwait’s position as a regional hub for Islamic finance.

With this achievement, Baitak Capital continues to implement its strategy aimed at expanding its presence in Islamic and international debt markets, through structuring and managing high-quality issuances and providing innovative, Shariah-compliant financing solutions that serve clients and support the development of financial markets.