KFH achieves remarkable presence in sovereign debt issuances

CEO KFH-Group, Mazin Saad Al-Nahedh reiterated KFH’s leadership in innovating sharia-compliant products, indicating that the bank had achieved remarkable presence in the subscription of the sovereign debt issuances (Tawarruq) issued by the State to help bridge budget deficit. KFH subscribed to 20 million of the last 7-year Tawarruq issue of 25 million to Islamic banks, ie 80 percent of the issue.

It is worth noting that KFH announced in an earlier statement that KD 700 million sovereign debt issuances (Tawarruq) went to Islamic banks since the beginning of the program that had started last April. The share of KFH accounts for 50 percent which represents its market share of Islamic banks in Kuwait. The pace of offering the Tawarruq issues is suitable for the market and the liquidity volume.

Al-Nahedh said that KFH has a proven track record of success in the subscription of the sovereign debt issuances (Tawarruq), indicating the issue was Tawarruq for Islamic banks rather than sukuk as the government is still working on finding legislative framework for this important product; sukuk that opens new horizons for financing the State’s budget deficit and the development process as per sharia principles. The sukuk legislation process reached advanced stages. KFH has extensive experience in the sukuk issuances in the domestic and global capital markets. The success is not only for KFH solo but also for the Group. KFH-Turkey was the first to enter the sukuk market in 2010. The bank issued lease certificates in domestic and overseas markets in different currencies such as US Dollar, Ringgit Malaysia and Turkish Lira.