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Boosting Growth, Expansion Plans
Al-Marzouq: KFH-Turkey mandated KFH-Capital to arrange the issue
Kuwait: Kuwait Finance House Turkey (KFH-Turkey) issued Tier 2 capital-boosting sukuk worth USD 350 million to support its capital situation. The bank has set the yield at 7.9 percent for 10-year tenure. The sukuk will be listed on the Irish Stock Exchange for trading. The credit rating agency "Fitch" assigned an expected rating of BBB- to this tier 2 Basel III-complaint issue.
"This issue represents one of the key issues in KFH-Turkey and is the outcome of collective success. The bank targets boosting its capital adequacy ratio so it can grow and enhance its presence in the international markets, yet obtains the required support and financing from the international markets. This reiterates its robust financial position and healthy expansion plans", said CEO- KFH-Capital, a subsidiary of KFH, Abdulaziz Nasser Al-Marzouq.
He added that KFH-Turkey mandated KFH-Capital as a global coordinator to arrange the issue, indicating that KFH-Capital played a key role in the issue and contributed in offering solutions in light of the current markets circumstances and the interest rate increase. KFH-Capital managed to coordinate with other banks and investors to issue the sukuk with excellent returns for both the investors and the issuer, and to raise the money needed form the international markets in a record time.
KFH-Turkey mandated international banks and financial institutions led by KFH-Capital as a global coordinator, manager and syndicator, in addition to other lead managers and syndicators which are HSBC, Dubai Islamic Bank (DIB), Nour Bank, QInvest Investment Bank, Emirates NBD, and KAMCO Investment Company.
KFH-Turkey paved the way for the sukuk market in Turkey when it issued debut sovereign sukuk for a Turkish institution in 2010 worth USD 100 mln for a period of 3 years, followed by the 5-year sukuk of USD 350 mln in 2011. In 2014 KFH-Turkey issued 5-year sukuk worth USD 500 mln where it attracted huge subscription valued over USD 3.25 bln. In 2015, the bank issued 300 million Ringgit with tenure of 5 years as part of a 2 billion Ringgit sukuk program in Malaysia.
Moreover, KFH-Turkey issued a lease certificate (sukuk) of TL160 million. It was the biggest ever lease certificate (sukuk) issuance in Turkish Lira by the private sector in the domestic market. KFH-Turkey surpassed the previous issue size of TL150 million in 2013.
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Kuwait Finance House (KFH)
KFH was established in Kuwait in 1977 and is enlisted in the Kuwait Stock Exchange. KFH Group is a global pioneer in the field of Islamic banking services, where it offers a wide array of Islamic products and services, not to mention a high standard of innovation and client service.
KFH manages its operations in the GCC, Asia, and Europe through over 446 branches, including KFH-Turkey, in order to offer services for the bank's clients in Turkey, Malaysia, Saudi Arabia, Bahrain, Germany, Jordan, and Dubai.
KFH's mission is to achieve highest levels of excellence and innovation in the field of client service, while developing common interest for all those concerned with the financial institution. KFH's vision is to spearhead the global development in Islamic financial services, and to upgrade the bank into the level of becoming the most sustainable profitable Islamic bank in the world.
KFH's values include cementing leadership through all its businesses, including leadership in the Islamic banking services worldwide, through innovation and in client service and the development of its employees. In addition, KFH is committed to all its procedures, and to setting up long-life partnerships with the concerned authorities.
For more information, please visit: www.kfh.com
© Press Release 2016
