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The National Bank of Kuwait (NBK), rated A1 (stable) by Moody’s / A (stable) by S&P / A+ (stable) by Fitch, has raised 150 Kuwait dinars ($488 million) through the issuance of a Tier 2 subordinated bond.
The KWD bond, with an expected rating of A- by Fitch, has a tenor of 10 years and 3 months, with a call option on or after five years of the issue date.
The fixed rate tranche has a coupon of 5.25% for the first five years and 3 months, and 1.50% over the prevailing CBK discount rate thereafter.
The floating rate tranche has a 2% coupon over the CBK discount rate per annum, capped at 1% above the fixed rate tranche, determined semi-annually.
The latest issuance follows NBK’s $300 million Tier 2 subordinated bond in November, which was priced at par with a 5.25% fixed semi-annual coupon rate.
(Writing by Bindu Rai, editing by Seban Scaria)
