Ahli United Bank K.S.C.P. (AUBK) has achieved remarkable success in the recent past, despite the challenging environment posted by covid-19 pandamic. In this context , the bank recently announced the successful pricing and issuance of $600 million Tier 1 Capital Mudaraba Sukuk. Strategic planning and implementation backed up by years of experience in management helped it to ensure success, along with the use of rigorous marketing campaigns that focused on the correct audiences.
The Sukuk issuance process followed the usual structure of Sukuk Mudaraba. Sukuk is an Islamic financial certificate. It complies with Shariah law. The issuer of Sukuk should adhere to a contractual promise to buy back the bond at a future date at the par value.
The issuance of Tier 1 Capital Mudaraba Sukuk was announced on 9th June 2021. At that time, a series of marketing campaigns were launched. Before the issuance, the team had numerous meetings with investors from the UK, Switzerland, Hong Kong and the Middle East. Upon the completion of these meetings, the bank could proceed with the issuance of Sukuk, which demonstrated the total Sukuk subscriptions they achieved (in excess of US$1.8 billion – over three times the targeted issuance size). As a result, it was awarded the best Sukuk issuance in Kuwait by Global Banking & Finance Review, and remains the prominent Islamic financial institution based in the country.
The marketing of the Issuance contributed greatly to its success. For example, the bank went ahead with a series of marketing meetings related to the Sukuk offering. The bank allocated 70% of Sukuk was allocated to countries in the Gulf region, including the United Arab Emirates, Kingdom of Bahrain, Qatar, Kingdom of Saudi Arabia, and Kuwait. 18% was allocated to Europe and the United Kingdom, and the remaining 12% was allocated to Asia and other parts of the world.
AUBK has been able to secure investors from numerous industries with the Sukuk issuance, spanning companies, financial institutions, asset managers and investment portfolios. On top of that, high net worth clients as well as private banks came on board, providing excellent support to. AUBK will build on this success to continue with its growth and maintain a secure position in the future.
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Numerous entities were behind the successful Sukuk issuance that AUBK secured. They included HSBC Bank, Citigroup, Standard Chartered Bank, KAMCO Invest, KFH Capital, Kuwait International Bank and Abu Dhabi Islamic Bank. The Sukuk was listed on NASDAQ Dubai as well as Euronext Dublin. NASDAQ Dubai is the international financial exchange of the region, demonstrating the strength of Ahli United Bank K.S.C.P. and its stable position as an Islamic financial institution.
This is the second Sukuk Issuance of AUBK to be successfully listed on NASDAQ Dubai. This contributed a lot towards the bank’s credibility and transparency among investors, attracting the attention of investors from numerous parts of the world and making it easier for investors and issuers to go ahead with their investments.
As the first bank to operate in Kuwait in 1941, Ahli United Bank K.S.C.P. has maintained a strong reputation of success and continuity throughout the past 80 years. The long history of the bank as well as its ability to ensure success in the future has created trust among investors.
Source: Global Banking & Finance Review