Kuwait Finance House was declared as the top primary dealer in the IILM sukuk program. Also, KFH achieved the top rank dealer in the secondary market in 2021. It is an unprecedented event that a financial institution occupies the top rank dealer for the IILM Sukuk Program in both primary and secondary markets.
KFH – Kuwait GM – Treasury, Ahmed Essa Al-Sumait emphasized that KFH has occupied the top rank in the IILM Primary Sukuk Program, the size of which reached US$ 14.12 Billion covering 36 Sukuks. Standard Chartered came in second position while MayBank came in third position.
Al-Sumait added that KFH was also recognized as the first rank dealer in the IILM ratings for the secondary sukuk market with a total trading of US$ 1,514 Billion in 2021 while First Abu Dhabi Bank came in second position and Standard Chartered bank came in third position among 10 primary dealers covering GCC and global banks.
Al-Sumait said that the IILM sukuk program is a short-term A-1 sukuk program as rated by Standard & Poor’s and emphasized that the current IILM sukuk program amounts US$ 3.51 Billion.
Al-Sumait expressed his honour, pleasure, and pride to accomplish this exceptional achievement, thus reiterating that KFH rank as the top primary dealer in both categories is deserved and reflects KFH outstanding role as a market maker and strengthens its pioneering role in activating and developing the sukuk market.
He added that this accomplishment would not have been possible without the remarkable dedication of the capital markets unit at the Treasury Department with a 100% Kuwaiti professional management. He appreciated the extensive efforts which the team exerted during the year.
He said that KFH is honoured to be counted on to distribute the IILM’s ‘A-1’ rated Ṣukūk programme to a wide base of investors. He indicated that the IILM plays a critical role in addressing the liquidity needs of Institutions offering Islamic Financial Services (“IIFS”), as reflected by the fact that 27% of total global USD Ṣukūk issuance in 2021 was supplied by the IILM, making the organisation as one of the top USD Ṣukūk issuers globally.
Al-Sumait reiterated that KFH will remain a dedicated strategic partner in fostering the development of the Islamic finance industry, via participation in the IILM’s Ṣukūk issuance programme.
He indicated that the Group Treasury & FI sector shall continue its endeavour to expand investment and trading activities in the primary and secondary capital markets to enhance its position as the top active market maker. The sector has managed to achieve a widespread and remarkable progress as it succeeded in encouraging several Islamic and traditional financial institutions to enter the market and participate in the trading transactions, thus contributing to the enhancement of liquidity and support of Islamic Finance Markets.
Meanwhile, the International Islamic Liquidity Management (IILM) praised and appreciated KFH contributions and strong performance in the Sukuk Market and the high professionalism it showed in marketing sukuk issuances and looked forward to further collaboration.