Kuwait Finance House (KFH) successfully issued a USD 850 million Additional Tier 1 Mudaraba Sukuk, the largest of its kind in Kuwait.  The issuance saw exceptional demand, with subscription orders of over USD 1.7 billion (more than twice the issue size), and an annual yield of 6.25%.

KFH Chief Treasury Officer - Kuwait, Ahmad Eissa Al-Sumait said that: "This issuance supports KFH's strategy to strengthen its capital base and diversify funding, thereby enhancing its capacity to finance Kuwait`s key developmental projects, particularly in infrastructure, energy and other vital sectors, and facilitating client expansion regionally and globally."

He explained that the perpetual Sukuk, with maturity after 5.5 years, will be listed on the London Stock Exchange.

He added that the successful, swift completion of this transaction reflects strong regional and international investor confidence in KFH. It also underscores the Bank’s solid financial position, robust credit profile, efficient operations, and market distinction as the largest bank in Kuwait’s private sector by market cap and profitability.

Deputy General Manager of Global Markets Trading and Investments at KFH, Khalid Saud AlRukhayes, said that demand, primarily from banks, financial institutions, and investment funds, came from investors across the Middle East, Europe, and Asia, which reaffirms KFH’s standing as a leading financial institution in the region.

He said that the issuance strengthens KFH's capital adequacy ratios, with strong demand from global investors underscoring confidence in the Bank’s credit profile.

AlRukhayes emphasized the importance of Sukuk as an effective Islamic financing instrument crucial for enhancing global capital markets and supporting corporate growth and expansion into new sectors.

It serves to note that KFH Capital Investment Company acted as the global coordinator and joint bookrunner for the issuance, alongside major international financial institutions, solidifying its position as a key player in structuring Sukuk at the regional and global levels.