KIB acts as joint lead manager for AUB's USD 600m T1 Sukuk issuance

The mudaraba-based unconvertible Sukuk were issued at a fixed profit rate of 3.875%, with the first reset date set as December 17, 2026

KIB - Jamal Al Barak

KIB - Jamal Al Barak

Kuwait: Kuwait International Bank (KIB) announced that it recently acted as a Joint Lead Manager in the USD600 million perpetual non-call Tier 1 (T1) Sukuk issuance for Ahli United Bank (AUB), alongside several regional and international banks and financial institutions. The mudaraba-based unconvertible Sukuk were issued at a fixed profit rate of 3.875%, with the first reset date set as December 17, 2026.

In addition to KIB acting as a joint lead manager with international banks serving as global coordinators along with local banks & financial institutions as joint lead managers and bookrunners.

Speaking about KIB’s participation in the issuance, Jamal Al-Barrak, General Manager of the Investment Department at the Bank, said: “The Sukuk market across the region continues to present numerous opportunities for attractive long-term investments and value-driven transactions. At KIB, we are firm believers in playing an active role in the investment landscape and the debt capital market, both in Kuwait and the GCC. Taking part in notable issuances and deals from our local jurisdiction, such as this one, is a major part of that.”

Al-Barrak further added: “Despite the setbacks and challenges of the past 18 months, the debt capital markets continue to function efficiently and actively as we have recently seen with a number of impressive deals from banks, corporates as well as sovereigns. As a Bank, we are determined to continue to build our investment portfolio and contribute towards the sustainable growth and development of the region’s investment infrastructure.”

It serves to note that KIB continues to participate in various high-quality issuances in Kuwait and across the GCC., The Bank served as joint lead manager and joint bookrunner in the Sukuk issuance for Qatar International Islamic Bank’s Tier 1 Issuance (QIIB), the first of its kind from Qatar. The Bank also participated as co-manager for Masraf Al Rayan’s USD 500 million Senior Unsecured Sukuk issuance, which garnered an oversubscription close to three times, in addition to being co-manager for Dubai Islamic Bank’s (DIB) USD 750 million Senior Unsecured Sukuk issuance, which was oversubscribed three times.

In 2021, KIB served as Joint Lead Manager in the Boubyan Bank $500 Million Additional Tier 1 Sukuk, and was a  co-manager for the issuance of the first-of-its-kind ‘Sustainability Sukuk’ by the Islamic Development Bank (IsDB), with a value of USD 1.5 billion for a period of five years and an aim to mitigate the effects of the novel coronavirus pandemic (COVID-19) for IsDB member states. 

The Bank also continued to invest in diversifying its own portfolio, as KIB successfully concluded a series of successful financial transactions in 2020, including the issuance of $300 million Tier 2 Basel III compliant 10-Year non-call 5-year Sukuk. Priced at a profit rate of 2.375% per annum and 9 times oversubscribed, the Sukuk was the highest-rated T2 in Kuwait and the GCC, in addition to being the first USD T2 Sukuk from Kuwait to be listed on the London Stock Exchange (LSE) and the first USD Basel 3 compliant T2 from Kuwait.

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