Boubyan Bank’s USD 500 Million Perpetual Sukuk Oversubscribed 2.6x

Kuwait-based Boubyan Bank has issued USD 500 million worth of perpetual Tier 1 Sukuk, which are non-callable for six years, with an annual profit rate of 3.95%. The Sukuk offering, which closed on the 24th of March 2021, attracted a total orderbook in excess of USD 1.3 billion, representing a 2.6x over-subscription rate.

Why it Matters?

According to Abdul Salam Al-Saleh, Chief Executive Officer of Corporate Banking Services of Boubyan Bank, the strong demand from investors highlights the bank’s regional and international standing, and is indicative of the impact of the issuance on the liquidity position and diversification of financing sources, while also strengthening regulatory ratios. In addition, the successful issuance is a boost to the Is...