Boubyan Bank has announced its regional and international success in covering the subscription in its first initial unsecured sukuk under the umbrella of a sukuk program with bids amounting to USD 4.6 approximately, i.e., the issuance was oversubscribed by more than 6 fold the targeted amount, which reflects the solid position of the bank.
The bank made a roadshow to meet several investors in Dubai and London, then proceeded with the issuance of the USD-denominated 5-year sukuk amounting to USD 750 million, which will be listed on the Irish Stock Exchange at a 2.593% annual profit rate; this rate is the lowest global Sukuk Issuance from Kuwait at all, reflecting the solid creditworthiness of the bank and the strong confidence in the bank by investors.
The issuance was subscribed in by 190 local, regional and international investors, including banks, and global & sovereign investment institutions, confirming investors’ high confidence in Boubyan Bank.
GCC & ME investors accounted for 51% of the issuance subscription, with 23% going to European investors, 23% to Asian investors, and the remaining 3% going to other investors.
Mr. Abdul-Salam Al-Saleh, the bank’s Deputy CEO stated: “Thanks to Allah, the Almighty, and then to the confidence of the investors, we managed to issue a major sukuk issuance that confirmed Boubyan Bank’s international and regional status and reputation, gained owing to its achievements over the past years across many levels.”
“This reflects investors’ confidence in the continuity of Boubyan Bank’s success and improvements. The issuance will have a positive effect on the bank’s liquidity position, and the diversification of its funding sources, while enhancing our CBK-related regulatory ratios,” he added.
Al-Saleh further referred to the fact that the issuance was rated A+ by Fitch Ratings, the global rating agency, coupled with Boubyan Bank’s solid ratings from Fitch, Standard & Poor’s & Moody’s.
Source: ZAWYA