Al Ahli Bank of Kuwait K.S.C.P. (“ABK”) today priced a highly successful US$300 million bond, marking the first international capital markets issuance out of Kuwait in 2018. The instrument, issued to further boost ABK’s eligible Tier-1 capital has a call date of 5 years.

The bond issuance is fully Basel III compliant and is also one of the few bank capital issuances in the GCC to carry an instrument rating.  ABK had previously conducted meetings with international investors across Hong Kong, Singapore, U.A.E. and the United Kingdom for its debut senior US$500 million bond issued last April 2017.  It further continued this dialogue on a deal roadshow with meetings in London earlier this month.

Orderbooks opened on Wednesday 19th September shortly after the Asia market open, with initial pricing thoughts of 7.375%. Following the strong response from investors, price guidance was revised on the same day during the London morning at 7.250% +\- 0.125% eventually printing at the headline figure.

The transaction was very well received by international investors, culminating in an orderbook twice oversubscribed at the initial price level.

The transaction received a solid international distribution with over 71% being sold outside the region - 46% to the UK, 14% to Europe, 11% to Asia - with the final 29% being sold to regional investors in the MENA region.

Top quality investors participated, with 62% being sold to fund managers, 13% to private banks, 12% to bank treasuries, 11% to pension funds and insurance companies, and 2% to corporates.

The transaction marks ABK’s second consecutive foray into the international capital markets since its debut deal last year.

The bonds will be issued by Al Ahli Bank of Kuwait K.S.C.P. (ABK) and are expected to settle on 26 September, 2018. The bonds will be listed on the Irish Stock Exchange.  Citigroup, HSBC, and J.P. Morgan were the Joint Lead Managers and Bookrunners for the offering.

 

Source: Golin MENA