As part of 2 billion Ringgit Sukuk program

Al Monayea: KFH-Investment Global Coordinator

Kuwait, April 28th 2015

Having pioneered the introduction of sukuk to the Turkish capital markets, KFH-Turkey has maintained its leading role in interest-free capital markets with its lease certificate (sukuk) issue in Malaysia.

"Establishing a 2 billion Ringgit sukuk program in Malaysia, KFH-Turkey has opened a new window into the sector by realizing the first tranche issuance of sukuk under the program on 31 March 2015", said Emad Al Monayea, Board Director and Chief Executive Officer, Kuwait Finance House Investment Company "KFH-Investment"

Completed in the amount of 300 million Ringgit Malaysia with a tenure of 5 years, Al Monayea added that the sukuk deal has been marked as the lowest-cost Ringgit sukuk deal ever realized by a Turkish company.  The deal is also the first asset-based sukuk traded in the secondary markets on an interest-free basis as realized in Malaysia by a Turkish issuer. With the completion of this sukuk transaction, the Bank has optimized its funding costs, extended its investor base and diversified its sources in the capital markets.

Moreover, he explained that the issuance, globally coordinated by KFH-Investment and managed by CIMB Investment Bank Berhad, Kuwait Finance House (Malaysia) Berhad and Maybank Investment Bank Berhad, provides an annual yield of 5,8 percent for its investors with a maturity date of 31 March 2020. Kuwait-Turkey has reduced its funding costs in USD for the five year issuance to 4,4% annually by swapping the funds raised in Ringgit Malaysia to US Dollars as of the date of issue. It is planned to allocate the funds raised under the program with favorable conditions and costs in financing the long term requirements of its corporate, commercial and SME clients as well as in the financing of foreign trade and financial leasing transactions.

In addition to numerous domestic sukuk issuances, Kuwait-Turkey has already completed several international sukuk issuances including a three year USD 100 million in 2010 and further five year issuances of USD 350 million in 2011 and USD 500 million in 2014.

-Ends-

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 380 branches, including KFH-Turkey, in order to offer services for the bank's clients in Turkey, Malaysia, Saudi Arabia, Bahrain, Australia, Jordan, Dubai, and Manheim in Germany.

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 2015