IslamicFinance.de

Kuwait International Bank’s (KIB) Chairman Sheikh Mohamed Jarrah Al Sabah announced the issuance of an AT1 Sukuk. On Wednesday 29 May 2019, KIB has successfully priced a $ 300 Million AT1 perpetual Sukuk that classifies under Tier 1 capital at an annual profit rate of 5.625%. KIB received an immense investor demand as evidenced by an oversubscription rate of over 15 times. This issuance has been arranged with efforts made by a group of participating parties including Citi and Standard Chartered who acted as Joint Global Coordinators. Dubai Islamic Bank, First Abu Dhabi Bank, KFH Capital and KAMCO acted as Joint Lead Managers and Bookrunners. Boubyan Bank acted as Co-Manager.

Kuwait International Bank started marketing $300 million perpetual sukuk to boost its tier 1 capital, with a yield of around 6.25%. Perpetual bonds mimic some of the characteristics of equity because they lack a maturity date. Citigroup, Dubai Islamic Bank, First Abu Dhabi Bank, KAMCO Investment Co, KFH Capital Investment Company, and Standard Chartered Bank have been hired to lead the transaction.

Kuwait International Bank (KIB) closed a $250 million 3-year syndicated Murabaha financing facility. The financing was concluded with a consortium of international and local banks that includes Standard Chartered Bank, First Abu Dhabi Bank, National Bank of Kuwait, Kuwait Finance House and Boubyan Bank. The ceremony to mark the occasion was attended by KIB's top management led by Mohamed Said El Saka, Deputy Chief Executive Officer & Acting CEO. He said that this new facility will help KIB continue pursuing its strategic objectives to strengthen the Bank’s position as a leading Islamic bank in Kuwait.

Despite the global drop in oil prices, Islamic finance continues to thrive. According to the EY consultancy, Sharia-compliant banking grew at an annual rate of 17.6% between 2009 and 2013, and is now projected to grow by an estimated 19.7% annually by 2018. This rate of growth far outpaces that of conventional banks, putting pressure on traditional banks to diversify their operations by including Sharia-compliant services. Kuwait International Bank (KIB) converted to exclusively Sharia-compliant services in 2007 and paved the way for Islamic finance in Kuwait. Sheikh Mohammed Al-Jarrah Al-Sabah, Chairman of KIB, said the bank has adopted a new strategic outlook which had its first stage launched in 2015. This brought about a change in KIB’s franchise operations and its day-to-day activities. The second phase develops the bank's product and service offerings. The final stage scheduled for 2017 will focus on boosting KIB’s competitive edge within the banking industry.

The banking sector in #Kuwait remains solid, robust and unaffected by regional events. The operating environment can be described as low-risk thanks to the country’s central bank regulatory role and conservative approach. Kuwait International Bank (KIB) has risen to become one of the most established in Kuwait. The bank's CEO, Loai Muqames, says diversification into the retail sector took priority with the launch of stand-alone retail banking operations. Since adopting a unified CRM system the quality and efficiency of the customer service has dramatically increased. KIB partners with Kuwait’s telecom providers to offer SMS banking for those account holders without a mobile internet connection. KIB is also investing in those sectors related to the $100bn government funded national development plan currently in motion. These sectors include infrastructure, oil and gas, energy, and real estate.

Kuwait International Bank (KIB) is keen on opportunities for mutual ventures and cooperation with Islamic finance and banking institutions, both in and beyond Kuwait.
Assistant Chief Executive Officer (CEO) Diyaa Al-Asfoor was speaking to the press upon a visit by a delegation from the Central bank of Malaysia and noted this visit was important for exchange of expertise in the field.