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Kuwait Finance House (KFH) priced its $1 billion five-year benchmark sukuk with the spread tightened to 85 basis points over US Treasures from initial price thoughts in the T+120bp area.
The coupon rate and yield were set at 4.563%, with a re-offer price at par.
The Islamic lender, rated A2 by Moody’s (stable outlook) and A by Fitch (stable outlook), saw its final orderbook cross $2.1 billion, excluding JLM interest.
The fixed rate senior unsecured Wakala / Murabaha structure will come under KFH’s $4 billion Trust Certificate Issuance Programme.
KFH Capital was mandated as the global coordinator of the deal, along with Abu Dhabi Islamic Bank, Bank of China, Boubyan Bank, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, Mizuho, Standard Chartered Bank and The Islamic Corporation for the Development of the Private Sector as joint lead managers and joint bookrunners.
The Eurobond will be listed on the London Stock Exchange’s International Securities Market.
FCA/ICMA stabilisation applies.
(Writing by Bindu Rai, editing by Brinda Darasha)
