Kuwait – Mubasher: Burgan Bank priced its inaugural $500 million 3.125% coupon at 99.30%, according to press release.
The five-year bond was priced under its newly established US$1.5 billion EMTN program to thus become the first financial institution ever issuing a public senior bond out of Kuwait.
The bond is scheduled to mature on 14 September 2021 and both the EMTN program and the issuance will be listed on the Irish Stock Exchange.
On the back of an order book in excess of US$1.5 billion with 129 orders, the bond was ultimately priced at a spread of 215 basis points over five- year Mid-swaps, a significant tightening from the initial price thoughts of "low to mid 200s".
The distribution profile of the book was well balanced as the Middle Eastern investors shared 49% of the transaction, while UK, Europe, Asian and US (offshore) investors accounted for 21%, 13%, 14% and 3% respectively, of the issuance.
In terms of investor type, the offering was distributed as follows: 49% for Banks, 41% for Fund Managers/Hedge Funds, 7% PBs, and 3% for others.
HSBC acted as the Global Coordinator, along with Emirates NBD Capital, HSBC, NBAD, SG CIB, Standard Chartered Bank as joint book-runners on the offering.
