Kuwait Finance House gets approval for $1bln sukuk issuance

Bank to use proceeds to support Tier 1 capital

  
Image used for illustrative purpose. Close-Up Of Rosary Beads With Coins And Text Blocks In Wooden Box On White Background.

Image used for illustrative purpose. Close-Up Of Rosary Beads With Coins And Text Blocks In Wooden Box On White Background.

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Kuwait Finance House, a Sharia-complaint bank, said the Central Bank of Kuwait has approved its request to issue sukuk (Islamic sharia-complaint bonds) worth up to $1 billion, or its equivalent in other currencies.

In a filing to the Kuwaiti bourse the lender said the sukuk would support its Tier 1 capital in accordance with Basel III requirements.

The COVID-19 pandemic has an impact on the Kuwaiti banking system with profitability declines reported last year. However, the sector is well capitalised, with capital adequacy ratio averaging 18 percent, well above the mandated 13 percent.    

(Writing by Brinda Darasha; editing by Seban Scaria)

brinda.darasha@refinitiv.com

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© ZAWYA 2021

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