ASAR on Burgan Bank’s Perpetual AT1 Capital Bonds Issuance

ASAR acted as Kuwait law counsel to each of KAMCO Invest (as sole issuance coordinator, joint lead manager and placement agent) and Gulf Bank (as joint lead manager and placement agent) regarding the successful completion of Burgan Bank’s issuance of KWD150,000,000 perpetual additional tier 1 (AT1) capital bonds.

This AT1 issue represents a landmark transaction in Kuwait as it is the largest ever Kuwaiti Dinar denominated AT1 bond issuance, and is the first t AT1 issuance denominated in Kuwaiti Dinar by a bank.

The AT1 issuance was also attractively priced in that the fixed-rate tranche under the issuance would generate a return of 7.25% per annum for the initial five years, followed by 3% over the prevailing CBK Discount Rate; the floating-rate tranche will generate a return of 3.25% over the CBK discount rate per annum and with a cap of 1% over the fixed rate tranche, determined quarterly.

ASAR’s team advising KIB included Rob Little (pictured left), partner John Cunha (pictured right), senior associate Emile Helou and associate Mustafa Sayed.