Kuwait’s Burgan Bank has floated fresh tier 2 bonds in the international debt market. The bank has floated $500 million bonds.
It is reported that the bond’s tenor is eleven years and can be redeemed after six years from the issuance date. The bond’s term structure is the first of its kind from the Gulf Cooperation Council. The bonds comply with the central bank of Kuwait’s basel III regulatory framework.
The transaction for the development saw involvement of global and institutional investors from Europe, Asia and the Middle East. The joint global coordinators for the transaction were Citi and Standard Chartered Bank. That said, the joint lead managers and joint bookrunners for the transaction were NBK Capital, MUFG, Standard Chartered Bank, Mizuho Securities, Bank ABC, Citi, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, JP Morgan and Kamco Invest.
The allocation of bonds was different for each region: 48 percent for Europe, 23 percent for Asia 23 percent for the Middle East and 6 percent for the US offshore accounts. The bond allocation among different entities was: 5 percent for insurance companies and agencies including pension funds, 76 percent for fund managers and 19 percent for private banks.
Chairman of Burgan Bank Group, Majed Al-Ajeel, told the media, “The success of this transaction highlights investors’ confidence in the Bank’s board and executive management, and its strategic direction. We would like to thank the Central Bank of Kuwait and the Capital Markets Authority for their support of this unprecedented transaction.”