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Boubyan Bank, a Kuwait-based Islamic lender, has signed a three-year $300m financing facility with Asian banks, according to 9fin sources.
HSBC led the new money Shariah-compliant transaction, which was syndicated out to Asian lenders and signed last week, said the sources.
The Kuwait-based Islamic bank (rated A by Fitch) also has plans to access both local and international Islamic capital markets this year, according to sources.
Sukuk plans
On 25 March, Boubyan’s board approved the issuance of sukuk or other Shariah-compliant financing instruments to comply with capital adequacy ratio requirements.
The lender plans to issue a Kuwaiti dinar denominated additional tier-one (AT1) sukuk after the summer break, according to sources, with Kamco Invest the sole arranger.
Boubyan has yet to decide the size but it could be between KWD 75m ($241.5m) and KWD 100m ($322.1m), said 9fin sources, subject to regulatory approval and market conditions.
Boubyan also plans to tap the international sukuk market, although discussions are at an early stage and no arrangers have been hired yet, the sources added.
The bank has a 1 October call option...
