Boubyan aims capital-boosting sukuk sale

Reuters

Kuwait’s Boubyan Bank is aiming to sell $250 million in capital-boosting sukuk after releasing initial pricing thoughts for the issue, a document from lead managers said.
The deal, structured with a perpetual tenor and with an option for the bank to redeem the paper after the fifth year, is earmarked to price in the very low 7
percent area.
No timeframe for the sale was given in the document. The sukuk will enhance the bank’s Tier 1, or core, capital.
The sharia-compliant lender, a subsidiary of National Bank of Kuwait, picked Dubai Islamic Bank, Emirates NBD Capital, HSBC, KFH Capital, National Bank of Kuwait, Standard Chartered and itself to arrange the issue.
Boubyan Bank is a Kuwait Islamic bank, which was established in 2004. Boubyan Bank has a paid up capital exceeding 196.5 million Kuwaitis Dinars, equivalent to approximately $700 million.
Boubyan Bank is one of the emerging banks in Kuwait and GCC, benefiting from its relation with National Bank of Kuwait, the major shareholder, which is ranked among the largest 300 banks worldwide. Boubyan Bank provides a variety of
banking services to individuals and
corporate customers.
The main activities of Boubyan Bank includes accepting deposits, establishing investment funds, and trading in real estate.