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.”
