DUBAI - Kuwait Finance House sold $750 million in Additional Tier 1 sukuk, or Islamic bonds, on Wednesday that will be non-callable for 5-1/2 years, a document reviewed by Reuters showed.
The sukuk were sold at 3.6%, which was tightened from initial price guidance of around 4% after more than $1.9 billion in orders, the document from a bank on the deal showed.
The deal was the latest in a series of international debt sales from the hydrocarbon-rich Gulf, as banks, companies and governments take advantage of low rates to bolster finances hurt by last year's oil price crash and the COVID-19 crisis.
Additional Tier 1 (AT1) bonds are designed to be perpetual, but issuers can redeem or "call" them after a specified period.
Ahli United Bank this month sold $600 million in AT1 sukuk at 3.875%, also non-callable for 5-1/2 years.
National Bank of Kuwait, the country's largest, and Boubyan Bank also issued bonds this year, as did Kuwait's Equate Petrochemical Company.
Kuwait faced a liquidity crunch last year after an historic dive in oil prices and the COVID-19 pandemic. It is in a standoff between successive governments and parliaments over a law that would raise its debt ceiling and allow the government to tap international debt markets.
Its parliament approved the 2021-22 state budget on Tuesday, but failed to quell a rift between government and opposition that has blocked economic reforms and hampered decision-making by the Gulf state's sovereign wealth fund.
(Reporting by Yousef Saba; Editing by Andrew Heavens and Alexander Smith) ((Yousef.Saba@thomsonreuters.com; +971562166204; https://twitter.com/YousefSaba))