Warba Bank completed the closing and settlement of a perpetual Additional Tier 1 capital sukuk worth KD 80 million on 27 October 2026. The issue uses a Mudarabah structure and carries a 5.50% profit rate, with a first reset date of 27 October 2031.
The sukuk are unlisted, and the bank said it expects a positive impact on its financial position and regulatory ratios. Shaheen Hamad Al Ghanem is the bank's chief executive officer.
TERMS AND STRUCTURE OF THE ISSUE
The KD 80 million issue is a perpetual Additional Tier 1 capital sukuk, issued under a Mudarabah structure. It carries a profit rate of 5.50%, with a first reset date of 27 October 2031.
CENTRAL BANK APPROVALS BEHIND THE SUKUK
The route to closing began on 11 August 2026, when Warba Bank received initial approval from the Central Bank of Kuwait to issue Additional Tier 1 Sukuk in the amount of USD 500 million.
On 5 October 2026 the bank obtained the central bank's final approval for the Private Offering Prospectus covering the issuance of Additional Tier 1 Sukuk not exceeding KD 100 million. The KD 80 million closed on 27 October is within that ceiling.
WARBA'S EARLIER ROLE IN ADDITIONAL TIER 1 DEALS
Books for the Riyad Bank sukuk opened and closed on 26 September 2024, and the order book reached USD 3.6 billion, more than four times the issuance size. The sukuk carried a fixed profit rate of 5.5%, to be reset in 5.5 years from the issuance date if not called, and were listed on the International Securities Market.
SUPPORT FOR AERCAP'S DEBUT SUKUK
Warba Bank also announced the issuance of AerCap's debut sukuk, a USD 500 million, five-year senior unsecured offering with a fixed profit rate of 4.50%. The bank supported the deal as a Co-Lead Manager, while Bank ABC, Dubai Islamic Bank, Emirates NBD Capital, HSBC, J.P. Morgan and KFH Capital led it as Joint Lead Managers and Bookrunners.
The AerCap issuance was priced at a discount, with a reoffer price of 99.338% to yield 4.65%. The sukuk were listed on the Global Exchange Market of Euronext Dublin and generated an order book of USD 1.375 billion, more than two and a half times the issuance size.