------------- --------------

KFH rules out merger or sale of its Malaysian unit

KUWAIT CITY, Sept 22, (RTRS): Kuwait Finance House (KFH) has ruled out a sale or merger for its Malaysian unit, its chief executive told Reuters on Tuesday.

Mazin al-Nahedh added the lender, the largest Islamic bank in the Gulf Arab state, “will begin restructuring the unit with immediate effect”.

The disclosure from KFH comes after a source familiar with the matter told Reuters last week that Qatar National Bank had bid to buy the unit, with the Qatari lender later acknowledging it was in early talks about an acquisition.

Qatar National Bank (QNB) has halted talks with Kuwait Finance House (KFH) to buy its Malaysian unit, the Gulf Arab region’s largest bank said on Tuesday.

“QNB announces stopping of preliminary talks to acquire Kuwait Finance House Malaysia without reaching an agreement,” it said in a bourse filing.

Meanwhile, Turkish Islamic bank Kuveyt Turk has picked seven banks to arrange a potential dollar-denominated sukuk to bolster its supplementary or Tier 2 capital, sources familiar with the matter told Reuters on Tuesday.

Kuveyt Turk Participation Bank, which is 62 percent owned by Kuwait Finance House, is planning to issue the sukuk after the Muslim festival of Eid Al-Adha which begins this week, two sources with direct knowledge of the deal said.

Kuveyt Turk has picked KFH Capital, Abu Dhabi Islamic Bank, Dubai Islamic Bank, Emirates NBD, HSBC, Noor Bank and QInvest to arrange investor roadshows ahead of the potential issue, the sources said.

The lender is expected to raise around $400 million, one of the sources said.

Asked about the plan, a bank official only said, “there has been no mandate yet”, without elaborating.

Check Also

KFH takes part in IMF, WBG 2018 Meetings in Indonesia

Group CEO heads delegation KUWAIT CITY, Oct 8: Kuwait Finance House (KFH) is participating in …

Translate »