NBK succeeded in pricing USD1.0bln in senior unsecured bonds

Largest US dollar FIG issuance from Kuwait

  
NBK succeeded in pricing USD1.0bln in senior unsecured bonds
  • First callable structure for a senior unsecured (fixed to floating) bond from the CEEMEA region
  • The large demand from global fixed income investors led to a USD 1.7 billion final orderbook
  • NBK managed to execute four successful issuances in a period of 10 months

National Bank of Kuwait (“NBK” or the “Bank”) succeeded in issuing Rule 144A/Reg S USD 1.0 billion Senior Unsecured notes under the Bank’s USD 5.0 Global Medium Term Note programme, representing the largest USD denominated issuance amongst Kuwaiti financial institutions.

The issuance will further enhance the Bank’s liquidity position, while supporting relevant regulatory ratios and further diversifying NBK’s sources of funding.

Global investors’ confidence in NBK was further endorsed with the peak order book reaching USD 1.7 bn (1.7x oversubscribed).

The notes have a 6-year maturity and first call date after 5-years. The issuance is also the first fixed to floating callable structured senior unsecured notes from the CEEMEA region; pioneering an innovative solution to optimize their contribution to the Bank’s Net Stable Funding Ratio.

The robust global demand allowed NBK to price the notes at 95 bps over US Treasuries, the equivalent of a 1.726% reoffer yield. The notes were issued at a discount and had a final coupon of 1.625%, fixed with semi-annual coupon payments until their first call date, followed by a floating rate of SOFR + 105 bps paid quarterly thereafter.

The Issuance achieved a globally diverse orderbook; lead by US investors (43%) followed by Asia (26%), Europe (12%), Middle East (10%) and UK (9%). Asset Managers lead allocation at 69%, followed by Banks at 22%, while Governments, Insurance and Pension Funds combined for 9%;

The issuance represents NBK’s fourth issuance under both Rule 144A and Regulation S formats, asserting itself as the only global financial institution issuer in the region.

NBK Capital, Citigroup Global Markets Limited and J.P. Morgan Securities plc acted as Global Coordinators on the issuance. The Bank also appointed NBK Capital, Citigroup Global Markets Limited, HSBC Bank plc, J.P. Morgan Securities plc, Standard Chartered Bank, Goldman Sachs International, Merrill Lynch International, and MUFG Securities EMEA plc as joint bookrunners and joint lead managers.

NBK Capital is a leading advisor and arranger of debt securities in the region, having advised on more than USD 32 billion of global and local conventional and Islamic debt capital markets mandates and restructuring assignments to date.

-Ends-

Send us your press releases to pressrelease.zawya@refinitiv.com

© Press Release 2021

Disclaimer: The contents of this press release was provided from an external third party provider. This website is not responsible for, and does not control, such external content. This content is provided on an “as is” and “as available” basis and has not been edited in any way. Neither this website nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this press release.

The press release is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Neither this website nor our affiliates shall be liable for any errors or inaccuracies in the content, or for any actions taken by you in reliance thereon. You expressly agree that your use of the information within this article is at your sole risk.

To the fullest extent permitted by applicable law, this website, its parent company, its subsidiaries, its affiliates and the respective shareholders, directors, officers, employees, agents, advertisers, content providers and licensors will not be liable (jointly or severally) to you for any direct, indirect, consequential, special, incidental, punitive or exemplary damages, including without limitation, lost profits, lost savings and lost revenues, whether in negligence, tort, contract or any other theory of liability, even if the parties have been advised of the possibility or could have foreseen any such damages.


More From Press Releases