|27 November, 2019

National Bank of Kuwait issues $750mln RegS/144A Perpetual Non-Call 6-year Tier 1 capital securities

Issuance subscription hit record $2.3 billion; more than 3x oversubscription

  • The strong global demand for the issuance reflects NBK’s well-established reputation and solid investors’ confidence

National Bank of Kuwait (NBK) issued $750 million  RegS/144A perpetual Non-Call 6-Year Tier 1 capital securities, offering 4.5% coupon rate; the lowest for GCC Tier 1 issuance amongst both conventional and Sharia-compliant issuances.

The Tier 1 capital securities were more than 3-times oversubscribed with a peak order book of $2.3 billion.

The proceeds of the issuance will boost the Banks’ capital base (additional Tier 1) in compliance with the Basel III regulatory framework and Central Bank of Kuwait regulations.

The issuance was well received by fixed-income investors and financial institutions around the world, reflecting NBK’s well-established reputation and solid Investors’ confidence

The transaction achieved a globally diverse order book lead by US investors at 33%, followed by UK investors at 27%, Asian-Pacific investors accounted for 20%, while European and MENA investors each made up 10% of the final order book.

The Additional Tier 1 Capital securities issuance, which is the largest in the GCC compared to similar issuances, attracted strong participation from global investors reaching 90%.

The issuance received a ‘Baa3’ rating from Moody’s, underscoring the bank’s outstanding credit ratings.

NBK Capital, Citi, J.P. Morgan and Standard Chartered acted as Global Coordinators and Joint Lead Managers, while HSBC and UBS acted as Joint Lead Managers on the transaction.

NBK continues to collectively enjoy the highest credit ratings from the top three international rating agencies; Moody’s, Fitch Ratings and Standard and Poor’s. The Bank’s ratings are supported by its high capitalization, prudent lending policies, and its disciplined approach to risk management, in addition to its highly recognized and very stable management team. The NBK has an extensive local and global presence. It has boosted its foothold in a number of international hubs in London, Paris, Geneva, New York, Singapore, and China (Shanghai), in addition to a number of MENA countries including Lebanon, Jordan, Iraq, Egypt, Bahrain, Saudi Arabia, UAE and Turkey.

-Ends -

About National Bank of Kuwait (NBK):

NBK was founded in 1952 as the first home-grown bank and the first joint stock company in Kuwait and the Gulf Region. NBK reported net profits of USD 1.2 billion (KD 370.7 million) for 2018. NBK's total assets were USD 90.4 billion (KD 27.4 billion) at the end of 2018, while shareholder equity stood at USD 9.7 billion (KD 2.9 billion).

NBK is the largest financial institution in Kuwait with effective market dominance in the commercial banking market and has been consistently awarded the highest credit rating of all banks in the region from Moody's, Standard & Poor's, and Fitch Ratings. NBK also stands out in terms of its local and international network, which includes branches, subsidiaries and representative offices in China, Geneva, London, Paris, New York, and Singapore alongside its regional presence in Lebanon, Jordan, Egypt, Bahrain, Saudi Arabia, Iraq, Turkey, and the UAE.

Long-Term Credit Ratings:

  • Moody’s Aa3
  • Fitch Ratings AA-
  • Standard & Poor’s A+
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