Kuwait Finance House (KFH) has announced the successful issuance of KD 200 million Additional Tier 1 (AT1) Mudaraba Sukuk, marking the first and largest Kuwaiti Dinar-denominated issuance in the domestic banking sector.

The Sukuk were priced at 200 bps above the Central Bank of Kuwait’s (CBK) discount rate, equivalent to an annual expected profit rate of 5.50%. Investor demand exceeded the target issuance size by more than KD 275 million. The issuance was fully subscribed by domestic investors, primarily private banking and wealth management clients, and financial institutions.

Chief Treasury Officer – Kuwait at KFH, Ahmad Eissa Al-Sumait, said that the successful completion of the Sukuk offering, which achieved full subscription in record time and attracted unprecedented demand despite ongoing regional developments, geopolitical tensions, and their implications for economic conditions and investor appetite regionally and globally, reflects investors’ strong confidence in KFH and underscores its credibility across financial institutions and capital markets.

He added that the issuance highlights KFH’s prestigious market position, strong creditworthiness, operational efficiency, robust brand, and outstanding financial performance across key indicators.

Al-Sumait explained that the issuance aims to strengthen KFH’s capital base, diversify funding sources, and enhance its ability to support development projects in Kuwait, particularly in infrastructure, energy, and other vital sectors, in line with the Bank’s growth and expansion strategy.

He noted that KFH Capital and Kamco Invest acted as Joint Lead Managers for the issuance, commending their significant role in the successful execution of the transaction. He also expressed appreciation to investors for their confidence, as well as to all partners and stakeholders for their contributions to completing the issuance within a record timeframe and achieving an oversubscription level above the initial target.

Al-Sumait emphasized that the Sukuk market holds strategic importance for KFH as one of the prominent financing instruments in global markets.

He noted that investor appetite for Sukuk continues to grow due to their role in supporting corporate expansion plans and facilitating entry into new sectors. He further highlighted that Islamic finance instruments continue to strengthen their presence in global capital markets, as reflected in increasing international investor interest in Sukuk issuances.

KFH Capital Chief Executive Officer - Abdullah Sulaiman Al-Haddad

Meanwhile, KFH Capital Chief Executive Officer, Abdullah Sulaiman Al-Haddad said that the company successfully led the arrangement of the Sukuk issuance, which was oversubscribed, marking the first domestic issuance of its kind denominated in Kuwaiti Dinars.

He added that KFH Capital, the investment arm of KFH Group, acted as Global Coordinator and Joint Lead Manager for the transaction, noting that the issuance witnessed strong demand from local investors. This reflects the growing recognition of Sukuk as a reliable and attractive financing instrument supporting the growth and expansion strategies of corporates, governments, and major development projects, while also demonstrating the high level of confidence in KFH and the strength of its financial position.

Al-Haddad explained that the Sukuk are perpetual in nature and callable after six years from the issuance date. He added that the transaction builds on KFH’s successful track record, noting that KFH Capital recently arranged several issuances on behalf of the Bank, including a USD 850 million Mudaraba Sukuk issuance in November 2025 aimed at strengthening KFH’s capital base.

He noted that KFH Capital was keen to secure balanced, diversified, and comprehensive coverage for the issuance in a manner that reinforces long-term relationships with investors and maximizes participation levels.

Al-Haddad added that the issuance represents a valuable addition to KFH Capital’s track record in the Sukuk market and extends several successful transactions arranged by the company, supporting the continued growth and wider adoption of Sukuk instruments. He noted that this reflects the confidence issuers place in KFH Capital’s expertise, capabilities, and institutional strengths, while further reinforcing KFH Group’s leading role in arranging and managing major Sukuk issuances.

He also commended the high level of coordination and cooperation among all parties involved in arranging and covering the issuance within a record timeframe and with a high degree of professionalism and commitment. He expressed hope that this successful transaction would encourage further corporate Sukuk issuances in Kuwait, enabling companies to benefit from this financing instrument while supporting national economic activity.