National Bank of Kuwait (NBK), the country's largest lender, has raised 125 million dinars ($412 million) through an issue of capital-boosting bonds, it said in a statement on Wednesday.
The lender, rated A+/Aa3/AA- by international rating agencies, issued the bonds in equal proportion between fixed- and floating-rate tranches.
The ten-year, non-call five subordinated bonds with a fixed rate will pay 275 basis points over the local benchmark rate for the first five years, after which the rate will be reset to the prevalent local benchmark rate at that time, the statement said.
The floating-rate bonds will pay 250 bps over the same benchmark, capped at 1 percent above the interest paid on the fixed-rate bonds.
Watani Investment Co and KAMCO Investment were the joint lead managers for the transaction. The Basel III-compliant bonds will enhance the bank's Tier 2, or supplementary, capital.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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