Kuwait’s Burgan Bank Launches $500m Tier 1 Bond At 7.250%

Kuwait’s Burgan Bank has launched a $500 million Tier 1 capital-boosting bond at 7.250 per cent on Tuesday, and is expected to price the deal later in the day, according to lead managers.

The lender had set final guidance in the 7.25-7.375 per cent range on Tuesday. The bond was initially marked on Monday in the low to mid-7 per cent area via HSBC as global coordinator and Citi, JP Morgan and National Bank of Abu Dhabi as lead managers.

The bond, with a perpetual tenor, can be bought back by the lender after the fifth year.

Investor orders for the issue grew to over $850 million, the document showed.

The bond, which enhances the bank’s Tier 1 – or core – capital, is being issued through a vehicle called Burgan Tier 1 Financing Ltd and will be guaranteed by Burgan Bank, which is rated BBB+ by Standard and Poor’s and A3 stable by Moody’s, the document showed.