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Kuwait’s Gulf Bank said today that it had issued KD 100m worth of 10-year non-callable before 5 years, Tier 2 Basel III – compliant subordinated bonds.
KAMCO Investment Company and Kuwait Financial Centre acted as joint lead managers for the issuance and Meysan Partners acted as legal advisors on the transaction.
The bonds have been rated BBB by Capital Intelligence.
“This is the first public issuance for Gulf Bank and will provide the Bank with a prudent balance between the different components of its capital, in order to continue enhancing earnings and shareholder returns,” Kamco said in a statement. “The transaction was oversubscribed and well received by institutional and high net worth investors. This is the third KWD denominated Tier 2, Basel III compliant debt issuance in Kuwait.”
The bonds are in two tranches. The fixed rate tranche has interest fixed for the first five years from date of issue at 6.50 per cent and fixed for subsequent periods at the Central Bank of Kuwait discount rate plus 4.25 per cent. The floating rate tranche’s coupon rate is equal to the CBK discount rate plus 4 per cent.