Kuwait Finance House (KFH) announced the successful issuance of a 5-year Senior Unsecured Sukuk of US$1 bn. The Sukuk will be listed on the London Stock Exchange.

This is the second issue under KFH US$ 4 bn Sukuk Program.

The Sukuk were priced at 95 basis points above the US Treasury Bonds, with a yield of 5.376% per annum.

KFH`s Sukuk issuance was oversubscribed by more than 2 times. The issuance received demand from regional and global investors (the Middle East, Europe and Asia), most of them banks, financial institutions, and investment funds.

KFH Acting Group Chief Executive Officer, Abdulwahab Iesa Al Rushood

In a press release, KFH Acting Group Chief Executive Officer, Abdulwahab Iesa Al Rushood said that successful issuance, which was oversubscribed within a single day, confirms the confidence that regional and global investors have placed in KFH, its capabilities, strategy, and reputation. In addition, it reflects the prestigious position it enjoys among financial institutions and capital markets, as well as its efficient operations and reliable and outstanding performance.

He explained that the aim of this issuance is to finance KFH`s operations and diversify its financing sources. Additionally, the new issuance gives KFH the opportunity to increase its financing and investment capabilities, support the infrastructure projects and the local economic sectors, as well as help customers with their expansion plans regionally and globally.

Al Rushood thanked investors for their trust and extended his gratitude to lead managers, coordinators, partners, and stakeholders for the successful completion of the issuance in record time. This achievement was further highlighted by an oversubscription that exceeded the required level.

Meanwhile, KFH General Manager Treasury Kuwait, Ahmad Eissa Al-Sumait, expressed pride in the successful issuance of a Senior Unsecured Sukuk of US$1 billion, which attracted significant demand from investors and was oversubscribed.

He indicated this issuance was the first Sukuk issuance of 2025 in the region and the first announcement of any issuance in the region of 2025.

Al-Sumait added that KFH attaches great importance to the Sukuk market due to its significance as a major financial instrument in the global markets. He added that the Sukuk market enjoys high demand from investors, and helps issuers implement their future expansion and growth plans. He further highlighted the role of Islamic financing instruments in expanding the global financial markets. This is reflected in the strong demand for Sukuk from investors worldwide.

“Acted as the sole global coordinator for the Sukuk issuance, KFH Capital has succeeded in strengthening its role in arranging such issuances regionally and globally.” Al-Sumait said.

Lead managers of the issuance are: KFH Capital, HSBC, Dubai Islamic Bank, First Abu Dhabi Bank, Boubyan Bank, Standard Chartered (SCB), Mashreq Bank, Mizuho Bank, Abu Dhabi Islamic Bank, Arab Banking Corporation (ABC), and Islamic Corporation for the Development of the Private Sector (ICD).