Clifford Chance

Clifford Chance advises Kuwait Finance House K.S.C.P. on the inaugural international issuance of US$1 billion Trust Certificate under KFH Sukuk Company's US$4 billion Trust Certificate Issuance Programme

Leading international law firm Clifford Chance has advised Kuwait Finance House K.S.C.P. ("KFH") on the inaugural issuance of US$1 billion senior unsecured trust certificates ("Sukuk") by KFH Sukuk Company as trustee under its US$4 billion Trust Certificate Issuance Programme. 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 is the first Islamic bank to have been established in Kuwait in 1977. KFH has operations in 10 countries with 631 branches and is listed on the Boursa Kuwait and the Bahrain Bourse. As at 18 October 2023, Kuwait’s government held 38.4% of the shares in KFH through the Kuwait Investment Authority, the Public Institution for Social Security, the Public Authority for Minors Affairs and the Kuwait Awqaf Public Foundation.

The 5-year Sukuk was priced at a profit rate of 5.011 per cent. representing a successful pricing. The issuance, which received demand from investors in the Middle East, Europe and Asia, attracted orders exceeding US$3.45 billion and was more than three times oversubscribed.

Clifford Chance's team comprised partner and Global Head of Islamic Finance, Qudeer Latif (Dubai) and Head of Middle East Capital Markets, Stuart Ure (Partner, Dubai), Nader Koudsi (Senior Associate, Dubai) and Shauaib Mirza (Consultant, Dubai).

Qudeer Latif commented: "We are delighted to have supported KFH in connection with its debut senior unsecured sukuk issuance. Our relationship with KFH goes back many decades and being able to support KFH on this milestone transaction has been a tremendous pleasure for us."

KFH General Manager Treasury Kuwait, Ahmad Al-Sumait commented: "the successful issuance, which was oversubscribed more than 3 times, confirms the confidence investors placed in KFH, its capabilities, strategy, and reputation. In addition, it reflects the prestigious position KFH enjoys among financial institutions and capital markets, as well as its efficient operations and reliable and outstanding performance. The aim of this issuance is to diversify funding sources and build a curve through the established USD 4 bio program to fund the bank operations. Lastly, I would like to thank Clifford Chance and every one that was part of the issuance for their efforts in helping in the success of the transaction.

Abu Dhabi Commercial Bank PJSC, Al Rajhi Capital Company, Arab Banking Corporation (B.S.C.), Boubyan Bank K.S.C.P., Dubai Islamic Bank PJSC, First Abu Dhabi Bank PJSC, HSBC Bank plc, KFH Capital Investment Company K.S.C.C., 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 K.S.C.C. was Co-Manager.