DUBAI, Sept. 27 (Reuters) – Kuwaiti bank Burgan Bank has hired Citi and Standard Chartered to lead a plan to sell senior six-year US dollar bonds, a bank document revealed on Monday.

Other banks involved in the deal are Bank ABC, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, Industrial and Commercial Bank of China, JPMorgan, Mizuho Securities and NBK Capital.

The unsecured bonds will be of a benchmark size, which typically means at least $ 500 million, and will be non-redeemable for five years, according to the document from one of the banks.

Earlier this month, Burgan Bank received preliminary approval from Kuwait’s central bank to issue up to $ 500 million in senior unsecured bonds and last week received approval from the Capital Markets Authority.

The bonds will be issued under the Burgan’s Euro Medium Term Note program. They are expected to have a fixed interest rate for five years, then a floating rate for the final year to maturity, if the bank does not “call” the bonds.

The closing of the bond sale will allow Burgan “to strengthen its long-term liquidity and regulatory liquidity ratios,” he said in an exchange brief.

Sales of senior bonds are relatively rare from Gulf banks, but Burgan’s debt-raising plans follow the country’s largest lender, the National Bank of Kuwait, guaranteeing $ 1 billion this month via six-year senior bonds non-redeemable for five years. (Report by Yousef Saba, edited by Louise Heavens)

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