Kuwait’s CBK gets approval to raise up to 120m dinars via bonds

Commercial Bank of Kuwait has received regulatory approval to issue up to 120 million dinars ($425.8 million) of bonds, as it prepares to convert into an Islamic bank. In April, CBK shareholders approved both the issuance of the subordinated bonds and plans to convert the lender into a full-fledged Islamic bank. The bonds will comply with Basel-III rules. While CBK said its conversion would not be immediate, it would leave Kuwait with only four local conventional banks and could help tip the Islamic banking industry’s market share above an estimated 40 per cent. CBK is not the first to convert into an Islamic bank, with Boubyan and Al Ahli having done so previously.