Kuwait Finance House (KFH) has mandated a consortium of banks for the issuance of a US dollar-denominated Additional Tier 1 (AT1) capital sukuk, as part of its ongoing efforts to strengthen its capital base and diversify funding sources. The sukuk will be listed on the London Stock Exchange’s International Securities Market.
KFH, which holds credit ratings of A2 from Moody’s and A from Fitch—both with a stable outlook—has appointed KFH Capital as the global coordinator for the transaction. The Islamic bank has also selected Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Arqaam Capital, ASB Capital, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, Kamco Invest, Mashreq, and Standard Chartered Bank as joint lead managers and joint bookrunners.
The planned issuance will take the form of a dollar-denominated, unrated Regulation S perpetual non-call 5.5-year fixed rate resettable AT1 sukuk. This structure is designed to comply with Basel III capital requirements and will support KFH’s strategy to maintain a strong capital position while offering investors exposure to one of the Gulf region’s most prominent Islamic banks.
A series of fixed-income investor calls began on Tuesday, November 11, 2025, allowing KFH and its advisors to engage with potential investors and assess market appetite ahead of the issuance.
Earlier in the week, KFH obtained the necessary regulatory approvals from both the Central Bank of Kuwait (CBK) and the Capital Markets Authority (CMA) to issue the sukuk, which carries a proposed value of $1.5 billion. The approvals mark a significant step forward for the bank’s capital-raising program.
The planned AT1 sukuk is expected to enhance KFH’s financial flexibility, deepen its investor base, and further solidify its reputation in the international capital markets. The initiative also underscores KFH’s commitment to innovation in Islamic finance and its continued leadership within the global sukuk market.