Bank of Sharjah leads $300m sukuk issuance for Kuwait International Bank

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Bank of Sharjah says it has taken on the role of joint lead manager and bookrunner in assisting Kuwait International Bank (KIB) with the launch of its additional $300m sukuk.

The transaction for what is dubbed a tier 1 (AT1) sukuk marks the first US dollar AT1 issuance from Kuwait since 2021 and represents KIB’s third venture into the US dollar capital markets, following successful issuances in 2019 and 2020.

The issuance saw participation from both international and regional banks, resulting in its order books peaking at an oversubscription of 2.2 times. The issuance was also priced at 6.6 per cent per annum, reflecting a tightening of 37.5 basis points from the Initial Price Thoughts (IPTs) of 7 per cent.

Mohamed Khadiri, CEO of Bank of Sharjah, said in a statement posted on UAE state news agency WAM that the issuance’s success is a testament to KIB’s “effective access to sukuk markets and the trust international and regional investors place in the bank’s financial resilience and operational performance.”

The issuance concluded with a spread of 195 basis points above US Treasuries, setting a new benchmark for the tightest spread achieved for an AT1 issuance in the Central, Eastern Europe, Middle East, and Africa (CEEMEA) region.