Mubasher: National Bank of Kuwait (NBK) has issued $750 million perpetual non-call six-year Tier 1 capital securities, offering 4.5% coupon rate.
This is the lowest tier 1 issuance among both conventional and Sharia-compliant issuances in member countries of the Gulf Cooperation Council (GCC).
The securities were more than three times oversubscribed with a peak order book of $2.3 billion, according to a statement on Wednesday.
Moreover, the proceeds of the issuance will boost the Banks’ capital base.
The transaction’s order book was dominated by US investors at 33%, followed by UK investors at 27%, Asian-Pacific investors accounted for 20%, while investors from Europe, Middle East and North Africa (MENA) region each made up 10% of the final order book.
In addition, the Additional Tier 1 Capital securities issuance, which is the largest in the GCC compared to similar issuances, attracted strong participation from global investors reaching 90%.
It is worth noting that the issuance received a ‘Baa3’ rating from Moody’s Investors Service.
