NBK issues $750mn perpetual 6-year Tier 1 capital securities

Issuance subscription hits record $2.3bn; more than 3X oversubscription

KUWAIT CITY, Nov 27: National Bank of Kuwait (NBK) issued $750 million RegS/144A perpetual NonCall 6-Year Tier 1 capital securities, offering 4.5% coupon rate; the lowest for GCC Tier 1 issuance amongst both conventional and Sharia-compliant issuances.

The Tier 1 capital securities were more than 3-times oversubscribed with a peak order book of $2.3 billion.

The proceeds of the issuance will boost the Banks’ capital base (additional Tier 1) in compliance with the Basel III regulatory framework and Central Bank of Kuwait regulations.

The issuance was well received by fixed-income investors and financial institutions around the world, reflecting NBK’s well-established reputation and solid Investors’ confidence

The transaction achieved a globally diverse order book lead by US investors at 33%, followed by UK investors at 27%, Asian-Pacific investors accounted for 20%, while European and MENA investors each made up 10% of the final order book.

The Additional Tier 1 Capital securities issuance, which is the largest in the GCC compared to similar issuances, attracted strong participation from global investors reaching 90%.

The issuance received a ‘Baa3’ rating from Moody’s, underscoring the bank’s outstanding credit ratings.

NBK Capital, Citi, J.P. Morgan and Standard

Chartered acted as Global Coordinators and Joint Lead Managers, while HSBC and UBS acted as Joint Lead Managers on the transaction.

NBK continues to collectively enjoy the highest credit ratings from the top three international rating agencies; Moody’s, Fitch Ratings and Standard and Poor’s. The Bank’s ratings are supported by its high capitalization, prudent lending policies, and its disciplined approach to risk management, in addition to its highly recognized and very stable management team. The NBK has an extensive local and global presence. It has boosted its foothold in a number of international hubs in London, Paris, Geneva, New York, Singapore, and China (Shanghai), in addition to a number of MENA countries including Lebanon, Jordan, Iraq, Egypt, Bahrain, Saudi Arabia, UAE and Turkey.