Ahli United Bank $200 million Perpetual Additional Tier 1 Sukuk oversub scribed
KUWAIT: Ahli United Bank KSCP (AUB) has successfully concluded the subscription of its issue of a $200 Million Perpetual Additional Tier 1 Sukuk. The Bank’s Chairman, Dr Anwar Al Mudhaf, commented “We are very proud of this achievement as it represents a major success for the Bank, and for Islamic Banking in general, notwithstanding the prevailing economic challenges. Furthermore, it reconfirms that the State of Kuwait enjoys the necessary components to attract international investors to enter the Kuwait market.”
Dr Al Mudhaf went on to say: “I would like to express my appreciation for the continued support extended to the Bank by our regulators, the Central Bank of Kuwait and the Capital Markets Authority, in the process of the Sukuk issue, to our many investors both in Kuwait and abroad and to the Bank’s team whose efforts were rewarded by our achieving this excellent result within a record time”.
Richard Groves, the Bank’s Chief Executive Officer said: “The successful issuance of AUB’s Sukuk has been demonstrated through being oversubscribed by over three times more than the targeted amount. This was achieved in less than one week from the date of the announcement of the transaction both locally and internationally, with a roadshow covering meetings in Asia, the Middle East and Europe.” Groves added: “The Perpetual Additional Tier 1 capital issue Sukuk is issued in compliance with the requirements of Basel III, the regulations of the Central Bank of Kuwait as well as in compliance with the regulations of the Capital Markets Authority.
To enable the secondary market trading subsequent to the issuance, the Sukuk will be listed on both the Irish Stock Exchange and NASDAQ Dubai. The Sukuk adds a new source of cost effective funding for AUB’s capital which will further diversify its capital and funding base. The strong demand generated for AUB’s Sukuk is a clear indication of the confidence of both local and global investors in the Bank’s diversified business model, its robust financial performance, and overall credit worthiness. The successful closure of this issue will assist AUB in both sustaining its growth momentum and optimizing its capital resources.”