KUWAIT: National Bank of Kuwait (NBK), the largest bank in Kuwait (rated Aa3 by Moody’s, A+ by S&P and AA- by Fitch), successfully issues $700 million perpetual Additional Tier 1 Regulation S securities. The securities will bear interest at a rate of 5.750%, which is considered amongst the lowest by international standards in the current market conditions. The transaction is the first Investment Grade rated issuance (Moody’s) in the Middle East, highlighting the underlying credit strength of NBK. The transaction would be used to boost NBK’s capital as it has been approved as fully eligible Additional Tier 1 Capital by the Central Bank of Kuwait (CBK) under its Basel III framework.
The inaugural transaction was well received by both regional and international investors, with the orderbook closing in excess of $1,400 million, representing a 2 times oversubscription for the deal. The issuance followed an extensive series of investor meetings across Asia, the Middle East and Europe.
The Additional Tier 1 Capital Securities will be listed on the Irish Stock Exchange. HSBC and Standard Chartered Bank acted as Joint Global Coordinators and Citigroup, HSBC, NBAD, NBK Capital and Standard Chartered Bank acted as Joint Lead Managers and Bookrunners on the issuance. UNB acted as a co-lead manager.
NBK is the largest financial institution in Kuwait with effective market dominance in the commercial banking market. It enjoys a broad banking presence with an international network of worldwide branches in four continents. NBK’s international presence spans many of the world’s leading financial centers including London, Paris, Geneva, New York and Singapore, as well as China (Shanghai). Meanwhile, regional coverage extends to Saudi Arabia, Bahrain, UAE, Lebanon, Jordan, Iraq, Egypt, and Turkey.
