National Bankof Kuwait S.A.K.P. unit Boubyan Bank K.S.C.P.'s $250 million deal is set to be priced in thevery low 7% area, Reuters reported May 9, citing a document from the deal'slead managers.
The bond will not have a maturity date, but the bank will havean option to repurchase the notes after the fifth year, according to thedocument. The sukuk will bolster the bank's Tier 1 capital, Reuters noted.
The document did not state any time frame for the sale.Boubyan Bank reportedly picked Dubai Islamic Bank, Emirates NBD Capital, HSBC,KFH Capital, National Bank of Kuwait, Standard Chartered and itself to arrangethe deal.
CEO Adel Al Majed said in March that Boubyan Bank wouldissue a $250 million sukuk before the end of April.