Clifford Chance Facilitates KFH’s $1 Billion Sukuk Offering
International law firm Clifford Chance has acted as legal counsel to Kuwait Finance House (“KFH”) on its inaugural issuance of US$1 billion senior unsecured trust certificates (“Sukuk”). These Sukuk, facilitated by KFH Sukuk Company as trustee under its US$4 billion Trust Certificate Issuance Programme, mark a significant milestone in Islamic finance.
The Sukuk were issued in accordance with Regulation S of the U.S. Securities Act of 1933 and are listed on the International Securities Market of the London Stock Exchange plc.
KFH, established as the first Islamic bank in Kuwait in 1977, boasts a robust footprint across 10 countries with 631 branches and is dual-listed on the Boursa Kuwait and the Bahrain Bourse. Notably, as of October 18, 2023, Kuwait’s government holds a substantial 38.4% stake in KFH through various entities, including the Kuwait Investment Authority and the Public Authority for Minors Affairs.
The 5-year Sukuk, priced competitively at a profit rate of 5.011%, reflects the success of the offering. Demand for the issuance was robust, with investors from the Middle East, Europe, and Asia displaying keen interest. Orders exceeded US$3.45 billion, demonstrating more than three times oversubscription and reaffirming KFH’s strong market presence and investor confidence.
Clifford Chance’s team comprised partner and Global Head of Islamic Finance, Qudeer Latif (Dubai, pictured) and Head of Middle East Capital Markets, Stuart Ure (Partner, Dubai), Nader Koudsi (Senior Associate, Dubai) and Shauaib Mirza (Consultant, Dubai).
Abu Dhabi Commercial Bank, Al Rajhi Capital Company, Arab Banking Corporation (B.S.C.), Boubyan Bank, Dubai Islamic Bank, First Abu Dhabi Bank, HSBC Bank, KFH Capital Investment Company, SMBC Nikko Capital Markets Limited, Standard Chartered Bank and The Islamic Corporation for the Development of the Private Sector were Joint Lead Managers on the issuance and Wafra International Investment Company was Co-Manager.
Dentons has provided legal counsel to the international and regional joint lead managers. For further information on the team click here.
