IslamicFinance.de

Emaar Properties and Kuwait’s Burgan Bank raised $1.25 billion (Dh4.59 billion) from bond sales. Emaar sold $750 million of 10-year Islamic securities, pricing them at 225 basis points over the benchmark midswap rate. Burgan Bank raised $500 million from a sale of five-year dollar securities that will carry a spread of 215 basis points over midswaps. Corporate bond sales are picking up amid a rush of sovereign issuance in the oil-exporting region. Saudi Arabia is expected to raise at least $10 billion in October from its first offering of international securities.

Kuwait’s Burgan Bank has chosen banks to arrange meetings with investors ahead of a potential issue of a capital-boosting bond. The lender will hold roadshows in Asia, the United Arab Emirates and Europe from Sept. 4, with a bond issue that enhances the bank’s Tier 1 capital ratio to follow, subject to market conditions. Should the US dollar-denominated bond issue happen, it will have a perpetual lifespan and be of benchmark size. Burgan Bank’s chief executive, Eduardo Eguren, said in March that the lender wanted to raise its capital before the end of the year to help it comply with Basel III guidelines, with perpetual bonds a potential route. The investor meetings will be arranged by HSBC as global coordinator and Citi, JPMorgan and National Bank of Abu Dhabi as lead managers.

Sheikh Salem Abdul Aziz Al-Sabah, governor of the Central Bank of Kuwait, chairman of the board of directors of the Kuwait Institute of Banking Studies (IBS), noted that the Kuwait IBS will work with Harvard Business School for the third year in a row to offer an executive education program for banking and finance executives in the GCC (gulf Cooperation Council) region.
Al-Sabah underlined the fact that the program is one of the strategic developmental projects the banking sector is following, conducted by the Central Bank of Kuwait, organized by the IBS and financed by the IBS member banks - Central Bank of Kuwait, National Bank of Kuwait, Gulf Bank, Commercial Bank of Kuwait, Burgan Bank, Al-Ahli Bank of Kuwait, Ahli United Bank, Kuwait International Bank, Industrial Bank of Kuwait and Boubyan Bank.

Kuwait Finance House (KFH) signed an agreement with Gulf Investment House (GIH) to restructure its debts that reach KD49.5m.
The agreement was supervised by Liquidity Management House (LMH). The collaborators of the agreement were: Boubyan Bank and Burgan Bank.
Mr Emad Al-Thaqeb stated that the agreement comes as part of a program to support local investment companies, which is supported by the Central Bank of Kuwait.

Press Release

Various Kuwaiti Banks Placed On CreditWatch Negative On Large Exposure To Investment Companies

LONDON (Standard & Poor's) Feb. 16, 2009--Standard & Poor's Ratings Services said today that it placed its 'A-' long-term counterparty credit ratings on Kuwait Finance House and Commercial Bank of Kuwait on CreditWatch with negative implications. At the same time, the 'A-2' short-term counterparty credit ratings on these banks were affirmed. Furthermore, Standard & Poor's placed its 'BBB+/A-2' long- and short-term counterparty credit ratings on Al Ahli Bank of Kuwait and Burgan Bank on CreditWatch with negative implications. At the same time, Standard & Poor's commented on its CreditWatch placement of Kuwait-based Gulf Bank. The 'A-/A-2' long- and short-term counterparty credit ratings on Gulf Bank remain on CreditWatch with negative implications, where they had been placed on Oct. 27, 2008.