Kuwait International Bank has completed the required approvals for a new senior unsecured sukuk issue, with the five-year transaction set to be listed on the London Stock Exchange’s International Securities Market.
Kuwait International Bank has announced that it will proceed with the issuance of senior unsecured sukuk for an amount of up to $600 million, or its equivalent in other currencies, after completing the relevant regulatory requirements and obtaining the necessary approvals.
The bank disclosed the decision to Boursa Kuwait on 1 September 2026, following an earlier disclosure on 4 August concerning the proposed transaction. According to the bank’s filing, the sukuk will have a five-year tenor and use a Wakala-Murabaha structure, with KIB Sukuk Limited acting as the issuer and Kuwait International Bank as obligor.
Five-year international issue
The securities are expected to be rated A by Fitch, while KIB’s obligor rating is A with a stable outlook. The transaction will be governed by English law and is intended for listing on the London Stock Exchange’s International Securities Market.
Citigroup Global Markets Limited and Standard Chartered Bank have been appointed global coordinators for the transaction. The wider group of joint lead managers and bookrunners includes ASB Capital, Boubyan Bank, Citi, Emirates NBD Capital, KFH Capital, KIB Invest, Sharjah Islamic Bank, Standard Chartered Bank, Warba Bank, Arab Banking Corporation, Arab Bank and QNB Capital.
The size disclosed by KIB is a maximum amount rather than a confirmed final issue size, and one important part of the transaction remains open: the final profit rate will be determined according to prevailing global market conditions when the sukuk is priced.
Liquidity and long-term funding
KIB said the announcement has no material impact on its financial position at present. Once the issuance and settlement are completed, however, the bank expects the transaction to have a positive effect on its liquidity position and to diversify its sources of long-term funding.
The distinction is important. The 1 September disclosure marks the point at which the proposed sukuk moves beyond the approval stage and towards execution, while pricing and final issuance terms remain subject to market conditions.
For KIB, the transaction places a sizeable new five-year instrument into the international sukuk market under a senior unsecured structure, backed by a broad group of regional and international banks. With approvals secured, the focus now shifts to execution, investor demand and the profit rate at which the bank ultimately completes the offering.
