Kuwait Finance House (KFH) announced the successful issuance of a 5-year Senior Unsecured Sukuk of US$1 bn. The Tier 1 Sukuk will be listed on the London Stock Exchange. This is the first issue under KFH US$ 4 bn Sukuk Program.

KFH Acting Group Chief Executive Officer, Abdulwahab Iesa Al Rushood said that the Sukuk were priced at 105 basis points above the US Treasury Bonds, with a yield of 5.011% per annum.

He added KFH`s Sukuk issuance attracted orders exceeding US$ 3.45 bn and it was oversubscribed by more than 3 times. The issuance received demand from regional and global investors (the Middle East, Europe and Asia), most of them banks, financial institutions, and investment funds.

In a press release, Al Rushood pointed out that the successful issuance, which was oversubscribed in one day, confirms the confidence investors placed in KFH, its capabilities, strategy, and reputation. In addition, it reflects the prestigious position it enjoys among financial institutions and capital markets, as well as its efficient operations and reliable and outstanding performance.

He explained that the aim of this issuance is to expand KFH`s capital base, finance its operations and diversify its financing sources. Additionally, the new issuance gives KFH the opportunity to increase its financing and investment capabilities, support the infrastructure projects and the local economic sectors, as well as help customers with their expansion plans regionally and globally.

Given Sukuk`s particular significance as a financing instrument in the global markets, Al Rushood emphasized that the Sukuk market enjoys high demand from investors and plays a role in enhancing the global capital markets, and helps issuers implement their future expansion and growth plans. He further highlighted the role of Islamic financing instruments in expanding the global financial markets.

“Acted as the sole global coordinator for the Sukuk issuance, KFH Capital has succeeded in strengthening its role in arranging such issuances regionally and globally.” Al Rushood said.

Lead managers of the issuance are: KFH Capital, HSBC, Dubai Islamic Bank, First Abu Dhabi Bank, Boubyan Bank, Standard Chartered, Abu Dhabi Commercial Bank, SMBC Nikko, Al Rajhi Capital, Arab Banking Corporation and Islamic Corporation for the Development of the Private Sector (ICD). Wafra International Investment Company participated as a co- manager for the issuance.

Al Rushood thanked the investors for their trust and extended his gratitude to lead managers, coordinators, partners, and stakeholders for the successful completion of the issuance in record time.