NBK Capital advises NBK Group on $3bn GMTN Programme – Watani Investment Co acts as Global Coordinator and Joint Arranger for the issue; deal 2.9 times oversubscribed

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KUWAIT CITY, June 4: Watani Investment Co K.S.C.C. (“NBK Capital”) acted as Global Coordinator and Joint Arranger in the establishment of a Global Medium Term Note (“GMTN”) Programme up to the amount of $ 3.0 billion by NBK SPC Ltd. (the “Programme”) and its debut issuance of $ 750 million senior unsecured 5-year notes maturing May 2022.  The Programme is unconditionally guaranteed by the National Bank of Kuwait S.A.K.P. (“NBK”), the largest and highest-rated bank in Kuwait (Aa3 by Moody’s, A+ by S&P and AA- by Fitch).

NBK Capital, Citigroup Global Markets Limited, HSBC Bank plc and J.P. Morgan Securities plc acted as Global Coordinators while NBK Capital, Citigroup Global Markets Limited, HSBC Bank plc, J.P. Morgan Securities plc, Standard Chartered Bank and First Abu Dhabi Bank acted as Joint Arrangers.

The issuance was very well received by both regional and international investors, with the global order book peaking in excess of $ 2.5 billion. The global order book closed at $ 2.2 billion after price revisions translating to an oversubscription of around 2.9x. US-based investors dominated the deal with a 57% share of the issuance, followed by MENA investors at 26%, European investors at 13% and 4% from Asia.

The issuance will be used to further boost NBK’s foreign currency liquidity and to diversify funding sources.

This transaction marks the first issue since 2009 from a Middle East bank to target the US market under Rule 144A of the US Securities Act as NBK targets a larger institutional investor base as part of its aim to diversify funding sources.

Isam Al Sager, NBK Group’s Chief Executive Officer commented: “We are very proud of our debut issuance under our newly established GMTN Programme, which marks our third successful transaction in the global debt capital markets. We are especially proud of the strong investor reception, which is a true testament to the quality of NBK Group’s credit. Furthermore, this issuance represents a landmark transaction that will serve as a vital benchmark for upcoming Kuwaiti banks’ issuances in the global debt capital markets.”

Faisal Al Hamad, NBK Capital’s Chief Executive Officer added: “We are incredibly honored to have advised NBK Group on this international issuance. The overwhelming demand from global investors is a direct reflection of NBK’s solid global reputation.

Furthermore, overwhelming demand from Kuwaiti investors reflects on the importance of the Kuwaiti market in supporting both regional and global issuances and reflects on NBK Capital’s ability to execute global transactions at the highest quality.”

The 5-year senior unsecured notes were priced competitively at 99.491% with a coupon of 2.75% and a spread of 100 bps over the 5-year mid-swap rate, returning a yield-to-maturity of 2.860%. The notes carry a rating of Aa3 by Moody’s and AA- by Fitch, in line with NBK’s ratings, highlighting the underlying credit strength of NBK.

NBK Capital, a leading investment company in the region, sets the standard in growth-focused innovative financial products and services. A world-class investment house, NBK Capital’s customer-centric approach provides forward-thinking solutions that address the specific investment needs of clients and investors, institutional customers and high-net-worth individuals.

NBK Capital leverages local and regional experience and expertise by combining the strengths, resources and global network of the National Bank of Kuwait SAK, one of the largest and oldest financial institutions in the region, with best-in-class investment structuring and execution, on a broad array of financial strategies to consistently deliver integrated value-added solutions.

Innovative products, objective research, creative thinking, timely implementation and excellence in service are the standards of quality of NBK Capital

Operating regionally from Kuwait, Dubai, Istanbul and Cairo, and with over 170 investment professionals, NBK Capital prides itself on a reach and scale that is global, a presence that is regional and a service level that always remains personal.

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