KFH Capital ‘lead manager’ inraising $1b Sukuk for Al Rajhi

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KUWAIT CITY, April 8: The CEO of KFH Capital, the investment arm of Kuwait Finance House, Abdulaziz Nasser Al-Marzouq, said that KFH Capital acted as lead manager in the US$ 1 billion Sukuk for Al Rajhi Bank, the first issue under the Saudi bank International Sukuk Program. This confirms KFH Capital’s leading position in managing, issuing and structuring Sukuk and debt instruments and diversifying its investor base along with its important role in diversifying investment products and developing the Islamic financial sector regionally and internationally.

In a press statement, Al-Marzouq added that the deal included the issuance of US$ – denominated sustainable Sukuk with a participation of more than 100 high-quality investors. The demand topped US$3.75 billion in a short period, which reflects confidence in the issuer and Sukuk as an Islamic financial product that attracts global financial markets. Sukuk is considered one of the most accepted and traded investment opportunities among financial corporates and individuals, as it is one of the most important finance and investment tools that periodically provide liquidity and fixed income.

Al-Marzouq expressed his pride at the Al Rajhi bank’s confidence and contribution and appreciation for the great cooperation shown by the participants in arranging the deal, and the turnout and welcome shown by the participating investors. While the coupon rate on Al Rajhi issuance has reached 4.75% annually, A- and A1 were assigned to Al Rajhi`s Sukuk by Fitch and Moody’s, respectively.  And the Sukuk will be listed on the London Stock Exchange.

He pointed out that KFH Capital has previous expertise and experience in structuring and managing sustainability Sukuk, and that it cooperates with many partners and investors to expand the role and values of these Sukuk from the total issuances, as it is one of the important forms of the product, which would develop the Sukuk market, open new horizons and gain additional importance in light of the increasing interest of companies and governments in sustainability issues and related activities and business.

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