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Al Ahli Bank of Kuwait to Raise KWD30mn in Subordinated Bonds

ABK gains regulatory approval to issue KWD 30m Tier 2 bonds, boosting investor confidence as Kuwait maintains an 11.68% state stake.

Al Ahli Bank of Kuwait to Raise KWD30mn in Subordinated Bonds
A Kuwaiti man walks in front of the Ahli Bank headquarters in Kuwait City on December 1, 2008. Ahli Bank is one of two Kuwaiti banks exposed to heavily-indebted Dubai World and its Nakheel real estate arm with loans worth a total of 120 million dollars, the Kuwaiti central bank governor said. AFP PHOTO/YASSER AL-ZAYYAT (Photo credit should read YASSER AL-ZAYYAT/AFP/Getty Images);map pages

Al Ahli Bank of Kuwait received a confidence boost by regulatory bodies yesterday as ABK got approval to market a 10-year dinar-denominated subordinated Tier 2 bonds with a principal amount not exceeding 30 million dinars ($98million).

The issuance will see an allotment of KWD 15 million as fixed rate bonds and an equal amount as floating rate bonds. 

State Equity in Investors of Al Ahli Bank

ABK Capital and Kamco Invest are mandated as joint lead managers on the offering.

The Government of Kuwait owns a 11.68% stake in ABK.

Confidence Boost for Al Ahli Bank

The green light follows a return to debt capital markets as ABK Capital and Kamco raised $300 million through an AT1 bond offering in September last year.

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