KIB Invest plays key role in Boubyan's $3bn sukuk issuance

18/06/2025 03:53 AST

Kuwait International Bank (KIB) Group has announced that its investment arm, KIB Invest, played a key role as a joint lead manager in the issuance of senior unsecured US dollar-denominated sukuk with a five-year maturity, issued by Boubyan Sukuk on behalf of Boubyan Bank.

The issuance, structured according to Wakala and Murabaha principles and valued at $500 million, is part of Boubyan Bank's $3 billion Trust Certificate Issuance Program.

It garnered strong interest from both regional and international investors, reflecting solid confidence in Kuwait's Islamic financial and banking institutions.

The issuance is supported by Boubyan Bank's strong credit ratings from leading global agencies, including an "A2" rating from Moody's and an "A" rating from both Standard & Poor's (S&P) and Fitch.

Commenting on the occasion, CEO Jamal Al Barrak said: "KIB Invest is pleased to have participated in this successful joint issuance. Our involvement reflects the market's confidence in the sharia-compliant investment instruments, as well as the trust placed in us by investors and stakeholders across both regional and global markets."

Al Barrak also highlighted that KIB Invest is strategically advancing its regional and international expansion by actively participating in high-profile transactions.

He affirmed the company's commitment to delivering Sharia-compliant investment solutions through a growing platform, supported by a team of experts and aligned with international standards in Islamic finance.

Ma'ab Mohammed Al Qassem, the General Manager of International Banking and Financial Institutions at KIB, expressed her appreciation to Boubyan Bank for their confidence in the capabilities and expertise of KIB Invest's team.

"The selection of KIB's investment arm for this landmark issuance underscores the strength of relationships among local banks and sets the stage for deeper partnerships within Kuwait's Islamic banking sector," she stated.

"This transaction also highlights KIB's ongoing support for local banks and its role in empowering regional financial institutions through strategic partnerships that enhance access to capital markets," she added.

Al Qassem further reaffirmed KIB's commitment to fostering the growth of capital markets through innovative, Sharia-compliant solutions designed to deliver strong long-term investment value.

The sukuk issuance was jointly arranged by HSBC, Standard Chartered, and Citibank as global coordinators.

In addition to KIB Invest, a number of prominent regional financial institutions also participated in managing the issuance, including Arab Banking Corporation, Boubyan Capital Investment Company, KFH Capital Investment Company, Warba Bank, Dubai Islamic Bank, SMBC Bank International, and the Islamic Corporation for the Development of the Private Sector.

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