Kuwait's Boubyan Bank issues first public sukuk

Kuwait's Boubyan Bank issued $250 million Perpetual Tier 1 Capital Certificates, completed May 16.

Kuwait's Boubyan Bank issued $250 million Perpetual Tier 1 Capital Certificates, completed May 16, the first public sukuk from a Kuwaiti bank, the first public sukuk out of Kuwait since 2007 and the world’s first public fully Basel III-compliant Tier 1 sukuk.

Dentons advised the issuance. Acting as joint global coordinators, Standard Chartered Bank, HSBC and Boubyan, collaborated with the joint lead managers on the Capital Certificates project, namely Emirates NBD Capital, Dubai Islamic Bank P.J.S.C., KFH Capital and National Bank of Kuwait S.A.K.P. Co-managers of the transaction were Abu Dhabi Islamic Bank, Ajman Bank P.J.S.C. and Noor Bank.

The Capital Certificates were accessible to seasoned investors outside of the United States in reliance on Regulation S under the U.S. Securities Act 1933. In addition, the certificates were made available on the Irish Stock Exchange and NASDAQ Dubai.

“We are delighted to have been part of this truly remarkable transaction,” Alex Roussos, Dentons capital markets partner, said. “It represents a very successful outcome to all the hard work put in by the entire working group, as well as the regulators. We see this transaction as a continuation of our great work across the region on Basel III-compliant instruments, and hope that it will encourage further issuances of sukuk from Kuwaiti entities, particularly following the recent significant legislative developments in the country regarding Islamic finance instruments and regulatory capital.”


Organizations in this story

Boubyan Bank Ali Al-Salem Street Kuwait City, Al Asimah

National Bank Of Kuwait Kuwait City, Al Asimah

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