Mohammed Jarrah Al-Sabah:The successful issuance reflects the confidence of regional and international investors in KIB Group’s financial position and strategic vision.
Raed Jawad Bukhamseen:The issuance strengthens KIB’s long-term funding profile and supports its sustainable growth plans.
Kuwait, 5 September 2026: Kuwait International Bank (KIB) announced the successful pricing of its inaugural USD500 million senior unsecured Sukuk issuance, <a href="https://middleeastdaily.net/psx-786-investments-ltd-join-forces-with-ladiesfund-to-empower-women-to-build-wealth/”>with a five-year tenor, under its USD1.5 billion Sukuk Program. This strategic issuance supports the diversification of the Bank’s funding sources and strengthens its long-term funding base. It also reflects investors’ confidence in KIB’s solid financial standing and its growing presence in regional and international capital markets.
The issuance was successfully priced against a backdrop of evolving global market conditions. Strong investor demand enabled KIB to tighten the pricing spread by 30 basis points from the initial price thoughts, resulting in a final spread of 95 basis points over the yield on five-year U.S. Treasury securities and a profit rate of 5.502% per annum.
The issuance attracted strong investor demand from the outset, with the orderbook reaching approximately USD 1.2 billion, equivalent to 2.4 times the issuance size and reflecting the depth of investor demand for the transaction.
Investor Confidence and Strategic Positioning
Commenting on the successful issuance, KIB Chairman Sheikh Mohammed Jarrah Al-Sabah said: “The success of this issuance reflects the confidence of regional and international investors in KIB Group’s strong financial position and clear strategic vision.”
He added that the issuance represents a significant milestone in strengthening KIB’s presence in international capital markets and broadening its investor base. It is the Bank’s inaugural senior unsecured Sukuk issuance under its USD 1.5 billion Sukuk Program.
The issuance was assigned a final rating of ‘A’ by Fitch Ratings, in line with the Bank’s ‘A’ Long-Term Issuer Default Rating, with a Stable Outlook.
Issuance Details
For his part, KIB Vice Chairman and CEO, Mr. Raed Jawad Bukhamseen, said: “The issuance represents a strategic step towards diversifying the Bank’s funding sources and strengthening its long-term funding base. It supports the Bank’s sustainable growth plans while maintaining a strong and balanced liquidity position and effective liability management, in line with banking best practices.”
Bukhamseen added: “The issuance was structured under Wakala/Murabaha profile with a five-year tenor, reflecting the growing importance of Sharia’-compliant funding instruments among financial institutions and investors.
The issuance is scheduled to settle on 10 September 2026, and the Sukuk will be listed on the International Securities Market of the London Stock Exchange. The Sukuk will mature on 10 September 2031.
He also highlighted the key contribution made by the partners to the success of the issuance. Citigroup Global Markets Limited and Standard Chartered acted as Global Coordinators, while ASB Capital, Boubyan Bank, Citi Bank, Emirates NBD Capital, KFH Capital, KIB Invest, Sharjah Islamic Bank, Standard Chartered Bank, Warba Bank, Arab Banking Corporation, Arab Bank, and QNB Capital acted as Joint Lead Managers and Bookrunners for the issuance.