Kuwait Finance House Issues USD 750 Million AT1 Sukuk; Largest Issuance in Kuwait by Size 

Kuwait Finance House (KFH) has announced the successful issuance of USD 750 million Additional Tier 1 (AT1) Sukuk Mudarabah (Sukuk), which were sold on the 23rd of June 2021. The Sukuk, which will be non-callable for 5.5 years, were sold at an annual yield of 3.6%, which was tightened from an initial price guidance of around 4%.

Why it Matters?

The Sukuk is historic as it is the largest issuance in Kuwait in terms of size, and also has the lowest yield for an AT1 issuance in the country, according to Hamad Abdulmohsen Al-Marzouq, Chairman of KFH. The Sukuk aims to support KFH’s Tier 1 capital in accordance with Central Bank of Kuwait’s instructions and Basel III requirements. The issuance will allow KFH to diversify its financing resources...