• Waleed Khaled Mandani: “Gulf Bank continuously strives to enhance its pivotal role in stimulating the local capital market, providing unique investment opportunities for all its clients.”

Burgan Bank announces the successful completion of its issuance of KWD 150 million Perpetual Additional Tier 1 Capital Bonds. The demand for the bonds exceeded expectations and the issuance was oversubscribed, confirming strong investor interest in the bank's offerings.

This issuance stands as a landmark achievement, being the largest Kuwaiti Dinar Perpetual Additional Tier 1 Capital Bond issuance in Kuwait. Furthermore, it is also the first Perpetual Additional Tier 1 Capital Bond issuance denominated in Kuwaiti Dinar by a bank and ranks among the largest Kuwaiti Dinar issuances, underscoring its significance within the financial market

Rated BBB- by Capital Intelligence, the bond presents rewarding returns for investors in both tranches, the fixed-interest bond, and the floating-interest bond. The fixed rate tranche offers a return of 7.25% per annum for the initial five years, followed by 3.00% over the prevailing CBK Discount Rate; On the other hand, the floating rate tranche provides a return of 3.25% over the CBK Discount Rate per annum, with a cap at 1.00% over the fixed rate tranche, determined quarterly.

Kamco Invest played a pivotal role as the Sole Issuance Coordinator and Joint Lead Manager and Placement Agent, while Gulf Bank contributed as a Joint Lead Manager and Placement Agent, in the successful issuance of the bonds.

Tony Daher, Group Chief Executive Officer of Burgan Bank, said: “Despite being one of the largest issuances in Kuwaiti Dinar, the successful completion of this transaction in a short period is a testament to the bank’s robust financial position, investment grade rating, and the positive developments it is undergoing. This issuance will enhance the capital ratios at the bank and will provide long Term liquidity to support long term strategic initiatives.”

Faisal M. Sarkhou, Chief Executive Officer of Kamco Invest, said, “This issuance marks a significant milestone as the first Perpetual Additional Tier 1 Capital Bond denominated in Kuwaiti Dinar by a bank, highlighting our pioneering role in structuring innovative debt instruments for the local capital market. The dedication of our Debt Capital Markets team and the efforts and collaboration demonstrated by all parties involved were instrumental in the successful completion of this notable transaction. Burgan Bank's strong financial position and strategic vision were pivotal in swiftly closing the issuance, which was oversubscribed.”

Waleed Khaled Mandani, the Acting CEO of Gulf Bank, expressed his satisfaction, stating, "We are delighted to join Kamco Invest as Joint Lead Managers in the successful issuance for Burgan Bank. This issuance, one of the largest in Kuwaiti Dinars, has attracted significant interest from investors."

He indicated that Gulf Bank continuously strives to enhance its pivotal role in stimulating the local capital market, providing unique investment opportunities for all its clients, and achieving the best returns for them. He noted that the establishment of Gulf Capital Investment Company, known as “InvestGB”, highlights this direction and contributes to providing a comprehensive range of distinguished investment products and services.

Daher concluded by expressing his gratitude to investors for their trust and confidence, as well as to all regulatory authorities, specifically the Central Bank of Kuwait and the Capital Markets Authority. He also thanked the joint lead managers and other stakeholders for their efforts and collaboration.