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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, tightened the price on its no-grow $300 million 10.25-year non-call 5.25-year Tier 2 subordinated bond following strong investor demand.
The Regulation S bond has been priced at par with a 5.25% fixed semi-annual coupon rate.
The price was tightened from the initial price thoughts in the +190bps area, with the spread at +T150bps.
The orderbook was in excess of $1.3 billion at launch, excluding JLM interest.
The offering is rated A- by Fitch.
The notes will be listed on the London Stock Exchange’s International Securities Market and cleared through Euroclear and Clearstream.
NBK stated the bond will allow the bank to diversify its source of funding and enhance its liquidity position.
Earlier this week, NBK also opened subscription on a KWD Tier-2 subordinated bond for an amount not exceeding 150 million Kuwait dinars.
The KWD bond, with an expected rating of A- by Fitch, will have a tenor of 10 years and 3 months, with subscription to close on November 13. The bond will have a call option on or after five years of the issue date.
(Writing by Bindu Rai, editing by Seban Scaria)
