Warba Bank $250 million 6.5% Tier 1 mudarabah sukuk issue

Overview:

• Kuwaiti lender Warba Bank sold a $250 million Tier 1 mudarabah sukuk in its debut Islamic bond issue.  
• The notes will pay rab-al-maal mudarabah profit at a rate of 6.5% until the notes mature in March 2022.
• The sukuk is listed on both the Irish Stock Exchange and Nasdaq Dubai.
• With Kuwait implementing Basel III in December 2016, Warba issued the sukuk to strengthen its Tier 1 capital ratio.
• Since 2015 it has become fairly common for banks in the Gulf to issue to sukuk, as national regulators began implementing Basel III and low energy prices reduced bank deposits and subsequently lenders' liquidity.
• Standard Chartered Bank was global coordinator and the joint lead manager together with Bank ABC, Emirates NBD Capital, KAMCO Investment Company, KFH Capital, and Noor Bank. 

Ben Naylor - Regional editor