Huge book as Kuwait International Bank brings AT1 debut as sukuk

Huge book as Kuwait International Bank brings AT1 debut as sukuk

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Kuwait International Bank has come to market for its first ever bond — a $300m additional tier one capital benchmark. It has met strong demand, despite the limited size.

The borrower, rated A+ by Fitch, had completed a roadshow in Singapore, Hong Kong, the United Arab Emirates and London.

The perpetual bond is unrated. It is a Reg S sukuk, callable in June 2024. Citigroup and Standard Chartered are global coordinators, sharing the mandate with Dubai Islamic Bank, First Abu Dhabi Bank, Kamco Investment Co and KFH Capital Investment Co as bookrunners.

The leads circulated initial price thoughts of 6.25% area. The book grew rapidly, exceeding $3bn including lead manager interest, allowing the leads to set final guidance at 5.875%-6%.

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