The National Bank of Kuwait (NBK) has issued bonds worth $1 billion, marking the first callable structure for senior unsecured notes, fixed to floating, across the Central and Eastern Europe Middle East and Africa (CEEMEA) region.
Final orderbook attracted $1.7 billion from global fixed income investors, with oversubscription of more than 1.7 times, according to a press release.
Offered under NBK’s “USD 5.0 Global Medium Term Note programme”, the issuance was the bank’s four successful offering in a period of 10 months. It also represented the largest USD-denominated issuance amongst Kuwaiti financial institutions.
NBK aims to enhance its liquidity position through this offering, while supporting relevant regulatory ratios and diversifying its funding sources.
The notes have a six-year maturity and first call date after five years. NBK was able to price the notes at 95 basis points (bps) over US Treasuries, the equivalent of a 1.726% reoffer yield. The notes were issued at a discount and had a final coupon of 1.625%.
US investors were the top in the orderbook with 43%, followed by Asians and Europeans with 26% and 12%, respectively. Investors from the Middle East acquired 10% of the orderbook, while the British represented 9%.
NBK Capital, Citigroup Global Markets Limited, and J.P. Morgan Securities were the Global Coordinators for the issuance.
In addition, NBK appointed NBK Capital, Citigroup Global Markets Limited, HSBC Bank, J.P. Morgan Securities, Standard Chartered Bank, Goldman Sachs International, Merrill Lynch International, and MUFG Securities EMEA as joint bookrunners and joint lead managers.
