Kuwait International Bank K.S.C. (“KIB” or the “Company”) has mandated Arab Banking Corporation (B.S.C.) and ABC Islamic Bank (E.C.) (together “ABC”) as the Initial Mandated Lead Arrangers (the “Bookrunners”) to arrange on their behalf a debut USD 100 million syndicated Murabaha financing facility (the “Facility”). The Facility will be used by KIB for general funding purposes. The Facility carries a tenor of 3 years and pays a profit margin of LIBOR + 120 basis points.
The syndication was launched today and is expected to close by the first week of August 2015.
KIB is a sharia-compliant retail and commercial bank with a network of 26 branches spread across the State of Kuwait. KIB was established in 1973 (as Kuwait Real Estate Bank) and is listed on the Kuwait Stock Exchange and regulated by the Central Bank of Kuwait. KIB offers a range of sharia-compliant retail and commercial banking products, including Murabaha (cost-plus asset finance), Ijarah (leasing) and Istisna’a (construction finance) facilities. The bank also engages in trade finance, investments, credit cards and property management. Bukhamseen Holding through its subsidiaries & affiliated companies (none of which holds more than 5%) is the largest shareholder of KIB with a 20.85% stake and Public Institution for Social Security (Government of Kuwait) is the second-largest shareholder with a shareholding of 9.13%. Al-Huda Hotels & Tourism Company has a shareholding of 7.25% followed by Al-Baraka Kuwait General Trading & Contracting Co. who owns 5.83%. The remaining shareholders all have a stake of less than 5%.
KIB is well capitalised with CAR at 24% as of December 2014, which is mostly tier 1 capital. The equity base grew year-on-year reaching USD 822 million in FY2014 (USD806 million in FY2013). KIB’s Net Profit for FY2014 was in line with that recorded in FY2013 at USD 47 million.
KIB is rated A+ (stable) by Fitch Ratings. State of Kuwait is rated Aa2 (stable) by Moody’s, AA (stable) by Standard & Poor’s and AA (stable) by Fitch Ratings.