- The issuance attracted significant interest from a diverse base of fixed-income investors, with participation from more than 85 investors, resulting in the highest ever international allocation on a GCC Tier 2 security
- Setting a regional benchmark, the issuance achieved the lowest reset spread ever recorded for a Tier 2 transaction in CEEMEA
- Orderbook demand surpassed $1.3 billion, with the issuance oversubscribed by more than 4.3x
- The new bonds reaffirm NBK’s strong standing in international capital markets
National Bank of Kuwait (NBK) announced the successful pricing of USD 300 million Tier 2 subordinated bonds, aimed at strengthening and diversifying the Bank’s regulatory capital ratios.
The new issuance, which received a rating of A- from Fitch Ratings, attracted strong demand from more than 85 fixed-income investors and financial institutions worldwide. Total interest exceeded $1.3 billion, representing an oversubscription of more than 4.3x the issuance size.
The issuance garnered strong interest from a diverse base of investors, reflecting the high level of confidence placed in the Bank as a leading financial institution in Kuwait and the broader MENA region. The strength of investor demand enabled NBK to secure highly favorable pricing, achieving the lowest reset spread ever recorded on a Tier 2 issuance in CEEMEA, at 150 basis points above U.S. Treasuries.
The bonds were issued with a maturity of 10 years and 3 months and feature a call option exercisable after 5 years. The notes may be redeemed in full at any point on or after 5 years from the issue date up to 5 years and 3 months from the issue date, and subsequently on any scheduled interest payment date. The bonds offer a fixed annual coupon of 5.25% paid semi-annually.
Demonstrating exceptional global investor confidence, the issuance achieved the highest ever international allocation on a GCC Tier 2 security, with 83% of the allocations placed outside the MENA region. The issuance attracted substantial interest from investors in the United Kingdom and Europe, who accounted for 59% of the total allocation. This was followed by 17% from Middle Eastern investors, 12% from the United States (offshore accounts), and 12% from Asia.,
Asset managers accounted for 74% of the total orders, followed by banks and private banking clients with 20%, and insurance companies and pension funds with approximately 6%. The Bank appointed Citibank as sole Global Coordinator, successfully completing the issuance through a single lead—reflecting the Bank’s ability to attract robust demand without a syndicate.
Commenting on the issuance, Shaheen Al-Ghanim, Principal – Debt Capital Markets Desk Treasury Group remarked: “By securing the lowest pricing ever recorded for this class of bonds across Central and Eastern Europe, the Middle East, and Africa, NBK has set a new benchmark for the region – reflecting the profound confidence that global investors place in NBK’s solid fundamentals and robust financial standing.”
Al-Ghanim added that the issuance achieved an unprecedented level of international participation for a GCC Tier 2 security, with 83% of allocations placed outside the MENA region—setting a record for the highest international allocation to date. Furthermore, the diverse demand for the offering highlights NBK’s established position in Global Capital Markets—reinforcing the Bank’s ability to deliver sustainable, long-term value for its shareholders.
NBK is the leading financial institution in Kuwait, maintaining a dominant position in the conventional banking sector. The Bank continues to hold the highest credit ratings among all banks in the region, as affirmed by the three major international rating agencies: Moody’s, Standard & Poor’s, and Fitch. NBK also stands out for its extensive local and international network, which includes branches and subsidiaries in China, Geneva, London, Paris, New York, and Singapore, in addition to its regional presence in Lebanon, Egypt, Bahrain, Saudi Arabia, Iraq, and the UAE.