Bank of Bahrain and Kuwait raises $500mln via senior bond issue

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Bank of Bahrain and Kuwait (BBK) has priced a $500 million five-year senior unsecured bond issue.

The deal was significantly oversubscribed, with demand exceeding $1.2 billion, attracting more than 50 regional and international investors. The bond was priced to yield 6.875 per cent.

A consortium of Bank ABC, Citigroup, Emirates NBD, First Abu Dhabi Bank, JP Morgan, Mashreq Bank, and SICO acted as joint lead managers.

JP Morgan also served as deal arranger.

BBK attributed the strong investor interest to its “sound financial position and efficient marketing strategy,” which included a three-day roadshow in London. The roadshow attracted a delegation led by BBK Group chief executive Dr AbdulRahman Ali Saif and featured in-person, virtual meetings and a global investor call.

“We take great pride in BBK’s outstanding success in completing this bond issuance at highly favourable pricing,” said Dr Saif. He expressed gratitude to the participating banks for their ‘crucial role’ in facilitating the transaction.

BBK’s general manager of treasury and investment Mohamed Al Rayes highlighted the “diverse range of regional and international investors” as a strong vote of confidence in the bank.

He linked the success to BBK’s “strategic vision, sound management practices, innovative financial solutions, and a proven track record of delivering attractive returns.”

The issuance marks another successful foray into the bond market for BBK, solidifying its competitive position within the region’s banking sector.