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Mon 9 May 2016 04:28 PM

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Kuwait's Boubyan Bank targets $250m sukuk sale

The sharia-compliant lender is a subsidiary of National Bank of Kuwait

Kuwait's Boubyan Bank targets $250m sukuk sale

Kuwait's Boubyan Bank is aiming to sell $250 million in capital-boosting sukuk after releasing initial pricing thoughts for the issue, a document from lead managers said on Monday.

The deal, structured with a perpetual tenor and with an option for the bank to redeem the paper after the fifth year, is earmarked to price in the very low 7 percent area.

No timeframe for the sale was given in the document. The sukuk will enhance the bank's Tier 1, or core, capital.

The sharia-compliant lender, a subsidiary of National Bank of Kuwait, picked Dubai Islamic Bank, Emirates NBD Capital, HSBC, KFH Capital, National Bank of Kuwait, Standard Chartered and itself to arrange the issue.

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