Kuwait International Bank (KIB) has announced the successful pricing of its USD 300 million Tier 2 Sustainable Capital Sukuk, a landmark issuance that highlights the Bank’s commitment to financial resilience and sustainability. The Sukuk was issued as part of KIB’s broader strategy to strengthen its capital base and reinforce its adherence to environmental, social, and governance (ESG) principles.
The offering achieved an annual yield of 5.535% and was met with exceptional investor demand, with the order book oversubscribed more than seven times, peaking at USD 2.1 billion. Priced at 175 basis points above U.S. Treasury yields, this issuance marks a record for the tightest spread ever achieved on a Tier 2 Sukuk—demonstrating strong global confidence in KIB’s credit profile and strategic direction.
KIB’s Chairman, Sheikh Mohammed Jarrah Al-Sabah, stated that the successful pricing of the Sukuk reflects the Bank’s solid financial performance and reputation in both regional and global markets. He noted that the issuance supports KIB’s long-term expansion plans and its focus on maintaining robust capital adequacy in line with regulatory requirements. He also confirmed that the Sukuk offering was completed after receiving all necessary approvals and following appropriate internal controls. The issuance and settlement are scheduled for October 16, 2025, with the Sukuk set to be listed on the London Stock Exchange.
Vice Chairman and CEO, Mr. Raed Jawad Bukhamseen, highlighted the strategic importance of the issuance, noting that it enhances the Bank’s financial flexibility and supports its liquidity management framework. He emphasized that the strong investor response demonstrates confidence in Kuwait’s economic fundamentals and positions KIB as a reliable and attractive institution for international capital. He further explained that the Sukuk aligns with KIB’s Sustainability Framework, as proceeds will be allocated to finance or refinance eligible green and social projects, reinforcing the Bank’s dedication to responsible banking and long-term sustainable development.
Mr. Bukhamseen also expressed his appreciation for the efforts of all institutions involved in the transaction. A prominent group of international financial firms managed the issuance, with Citigroup and Standard Chartered Bank serving as Joint Global Coordinators. The Joint Lead Managers and Bookrunners included ASB Capital, Arqaam Capital, HSBC, Kamco Invest, KFH Capital, KIB Invest, and QNB Capital.
Commenting on the structure and significance of the issuance, Mr. Mohamed Said El Saka, Deputy Chief Executive Officer of KIB, stated that the Sukuk represents a key step in diversifying the Bank’s funding sources and optimizing its capital structure. He explained that the Sukuk qualifies as Tier 2 Capital under Basel III guidelines and is expected to receive a BBB+ rating from Fitch. Issued under the Islamic concept of Wakala, the Sukuk is fully compliant with Shariah principles and demonstrates the growing role of Islamic finance instruments in the global capital markets.
Mr. El Saka also noted that this issuance reinforces KIB’s mission to deliver innovative, ethical, and sustainable financial solutions. He added that the funds raised will be channeled into initiatives that align with KIB’s ESG goals, further contributing to global efforts to build a more sustainable, inclusive economy.