01 June 2016
Kuwait City - Gulf Bank K.S.C.P. ("Gulf Bank") announces the successful issuance of a 10 years non-callable before 5 years, Tier 2 Basel III - compliant subordinated bond for KD 100 million.

KAMCO Investment Company K.S.C. (Public) ("KAMCO") and Kuwait Financial Centre K.P.S.C. ("Markaz") acted as Joint Lead Managers for the issuance and Meysan Partners acted as legal advisors on the transaction.

In a joint press release, Gulf Bank highlighted the success of the issuance of the subordinated Tier 2 Basel III - compliant bonds with a rating of BBB by Capital Intelligence. This is the first public issuance for Gulf Bank and will provide the Bank with a prudent balance between the different components of its capital, in order to continue enhancing earnings and shareholder returns.  The transaction was oversubscribed and well received by institutional and high net worth investors. This is the third KWD denominated Tier 2, Basel III compliant debt issuance in Kuwait.

Mr. César González-Bueno, Chief Executive Officer of Gulf Bank said, "Gulf Bank is pleased with the outcome of this Tier 2 Basel III bond issuance.  This is the first public issuance of its kind for Gulf Bank and we are delighted that it was so well received by investors. This will play a crucial role in strengthening the Bank's Capital Adequacy Ratio and will help the Bank implement its strategic corporate direction. Local debt markets have become increasingly more sophisticated and this has been an important step in further supporting Kuwait's bond market. Gulf Bank would like to thank the Central Bank of Kuwait and the Capital Markets Authority for their ongoing support and cooperation.  We also appreciate the role KAMCO, Markaz, and Meysan Partners have played in this issuance."

Mr. Faisal Sarkhou, Chief Executive Officer of KAMCO said, "We are proud to have played an active role in successfully completing Gulf Bank's Tier 2 compliant bond issuance. We consider this bond issuance to be yet another building block in supporting the Kuwait capital markets. We progressively work towards developing and enhancing the private sector and Kuwaiti economy through diverse investment opportunities. We value our Investment Banking and Wealth Management teams in consistently undertaking roles in key announced transactions, while putting forth their experience and credibility to deliver the best possible outcome for our clients during each transaction process."

Mr. Manaf A. Alhajeri, Chief Executive Officer of Markaz said, "We cannot emphasize enough the importance of developing a bond market that could contribute to the stability of investment portfolios and fixed income funds. Therefore, we at Markaz have been spearheading efforts to deepen the local debt market through structuring and managing new bond issuances, in addition to publishing research and periodical reports about bonds activities in the region. The capital markets and fixed income team at Markaz enjoys more than 10 years of experience and has managed the issuance of 14 bonds with a total value exceeding KD 440 million. We are proud to be partners with Gulf Bank in this issuance which was met with high demand reflecting investors' trust in Gulf Bank and the soundness of the bond structure."

The Bonds are comprised of two tranches; Fixed and Floating. The Fixed Rate Tranche coupons are fixed for the first five years from date of issue at 6.50% per annum payable quarterly in arrears, and fixed for subsequent periods at CBK Discount Rate (on the date of the fifth anniversary from date of issue) plus 4.25% per annum, payable quarterly in arrears. The Floating Rate Tranche coupon rate is equal to CBK Discount Rate, determined every three month, plus 4.00% payable quarterly in arrears.

-Ends-

Gulf Bank Overview
Gulf Bank, established in 1960, is a leading retail bank in Kuwait with a broad offering of consumer and wholesale banking products. It has a network of 56 branches, with total assets of KD 5,438 million for year ended 31 December 2015. Gulf Bank (GBK) is listed on the Kuwait Stock Exchange (KSE), as of 1984.

Gulf Bank is currently ranked "A" by the three leading international credit rating agencies. Prior to 2015, Gulf Bank was rated A+ by Fitch Ratings. In June 2015, the Bank received a rating upgrade from Standard & Poor's to "A-" from "BBB+". In November 2015, the Bank received a rating upgrade from Moody's to "A3" from "Baa1".

Gulf Bank has been recognized with numerous awards, spread over different sectors of its work, including consumer banking, wholesale banking, products, performance, marketing, human resources, and corporate social responsibility.  These include awards from respected international publications such as The Asian Banker; International Finance Magazine (IFM); International Banker; Banker Middle East; and Arabian Business Magazine

Gulf Bank is strongly committed to giving back to Kuwait through its corporate social responsibility program.  The Bank supports numerous events focusing on youth, education, health and fitness, helping the underprivileged, women's empowerment, as well as promoting Kuwait's heritage and culture.

For more information about Gulf Bank log onto: www.e-gulfbank.com  

About KAMCO
KAMCO Investment Company is a premier investment company based in Kuwait and is regulated by the Capital Markets Authority with one of the largest private sector AUMs in the region.

Established in 1998 and listed on the Kuwait Stock Exchange (KSE) in 2003, KAMCO is a subsidiary of United Gulf Bank (UGB) and is the asset management and investment banking arm of Kuwait Projects Holding Company (KIPCO).

It has become a leading regional company within its sector offering innovative products and services to its clients, holding over USD 11.2 billion of client AUM and has successfully completed 85 investment banking transactions worth over USD 12 billion as of 31 December 2015.

With almost two decades of experience in conducting business in Kuwait's dynamic investment industry, KAMCO has successfully established a robust reputation for solidity, characterized by its prudent, conservative investment philosophy and spirit of transparency, which has consistently commanded the goodwill of a wide patron-base.

The company will further aggressively build upon its core competencies to offer MENA-wide investment management consultancy and services, backed by its proven track record in stringent risk mitigation, investment product innovation, and a cautious investment approach towards local, regional and international capital markets.

About Markaz
Kuwait Financial Centre K.P.S.C "Markaz", with total assets under management of over KD 1 billion as of December 31, 2015 (USD 3.38 billion), was established in 1974 and has become one of the leading asset management and investment banking institutions in the Arabian Gulf Region. Markaz was listed on the Kuwait Stock Exchange (KSE) in 1997. 
 
Gulf Bank Corporate Communications
Tel: 2244-9501 Ext 2569, 2040

For any additional information, please contact:
KAMCO Marketing Department
marketing@kamconline.com 
Tel: +965 185 26 26 Ext: 1360, 1337

© Press Release 2016