Bank of Sharjah acts as Joint Lead Manager and Bookrunner in a US$ 300 Million Sukuk for Kuwait International Bank
Bank of Sharjah, a prominent commercial bank in the UAE, has reaffirmed its commitment to expanding its presence in local, regional, and international markets by playing a pivotal role in a US$300 million Additional Tier 1 (AT1) Sukuk issuance for Kuwait International Bank (KIB). Acting as the Joint Lead Manager and Bookrunner, Bank of Sharjah collaborated with other international and regional banks to facilitate this landmark transaction.
This Sukuk issuance marks a significant milestone for Kuwait International Bank, representing its first US dollar AT1 issuance since 2021 and its third issuance into the US dollar capital markets. The transaction garnered strong demand, with order books reaching an oversubscription of 2.2 times, underscoring KIB's solid market position. The issuance was priced at 6.625% per annum, reflecting a tightening of 37.5 basis points from the Initial Price Thoughts (IPTs) of 7.000%.
Mr. Mohamed Khadiri, CEO of Bank of Sharjah, expressed his satisfaction with the successful execution of the transaction, stating, "We are extremely pleased to have played a central role in this Sukuk issuance for Kuwait International Bank. Our contribution underscores Bank of Sharjah's strategic commitment to delivering innovative debt solutions that cater to our clients' funding needs in the region."
Mr. Khadiri emphasized the significance of the issuance, highlighting KIB's ability to access the Sukuk markets effectively and the trust that international and regional investors place in the bank's financial resilience and operational performance. The issuance concluded with an exceptional spread of 195 basis points above US Treasuries, setting a new benchmark for the tightest spread achieved for an AT1 issuance in the Central, Eastern Europe, Middle East, and Africa (CEEMEA) region.
In his concluding remarks, Mr. Khadiri reaffirmed Bank of Sharjah's commitment to its strategic objectives, aiming to strengthen its position as a premier banking institution in the Emirate of Sharjah and the UAE while providing bespoke financing solutions to its customers. This transaction adds to Bank of Sharjah's impressive track record of providing financing services and advisory to corporate customers and financial institutions locally and across the region.
