Kuwait-Mubasher: The National Bank of Kuwait (NBK) has issued KWD 125 million ($412.5 million) Subordinated Tier 2, Basel III compliant bonds, according to a statement issued by NBK.
The bonds duration is 10 years, and investors cannot buyback any before five years from issuance.
“The issuance represents the first investment grade-rated (Baa1 by Moody’s) Basel III-compliant, Subordinated Tier 2 bond issuance in the MENA region,” noted NBK.
The bonds’ transaction was well received by institutional and high net worth investors, with a double of over-subscription rate.
NBK added that “The issuance proceeds will be used to boost NBK’s Tier 2 capital, as it has been approved as fully eligible Tier 2 Capital by the Central Bank of Kuwait (CBK) under its Basel III framework, and for general and corporate purposes.”
The bonds were priced at 100% and were issued in equal proportion between fixed and floating-rate tranches.
“The transaction, which follows NBK’s $700 million Additional Tier 1 Capital Securities in April 2015, represents the Bank’s first KD-denominated debt capital markets issuance,” NBK clarified.
