Dubai—Dentons has advised Kuwait International Bank K.S.C.P. on its successful US$300 million Tier 1 capital sukuk issuance, with the participation of a number of local and international banks acting as joint lead managers and bookrunners on the transaction, which settled on 1 May 2024. The Tier 1 capital sukuk was issued by KIB Tier 1 Sukuk 2 Ltd, a special purpose vehicle (SPV) issuer incorporated in the Cayman Islands. The proceeds of the issuance will be used by the Bank to support its additional Tier 1 capital position for the purposes of maintaining its capital adequacy ratios within guidelines laid out by the Central Bank of Kuwait.

The transaction is listed on the International Securities Market of the London Stock Exchange and the Tier 1 capital sukuk was offered to sophisticated investors outside the US in reliance upon Regulation S under the US Securities Act of 1933.

Debt Capital Markets partner Alex Roussos added: "We are thrilled to have supported the team at Kuwait International Bank on their second Additional Tier 1 sukuk issuance, having also supported the Bank in its debut capital raising in 2019. This was a highly significant transaction for the Bank and we are delighted to have been able to help bring the transaction to market. The market for regulatory capital issuances remains strong across the GCC, and especially in Kuwait where issuers have developed a strong track record of accessing the market with subordinated instruments, helped by very robust and proactive regulators, the CBK and CMA."

The Dentons team in Dubai was led by partner Alex Roussos, with assistance from senior associate Brian O'Leary, senior legal consultant Katie Phillips and associate Ed Varney

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