ASAR - Al Ruwayeh & Partners, a leading corporate law firm in Kuwait, acted as Kuwait legal counsel to the joint lead managers associated in Burgan Bank’s KD100 million ($331 million), 10NC5, Subordinated Tier 2, Basel III — Compliant Bonds. 

 

ASAR’s legal counsel was provided to the joint lead managers and placement agents namely Kamco Investment Company, Gulf Bank, and Watani Investment Company, said a statement.

 

The bond issuance comprised both a fixed and floating rate tranche with the fixed rate coupon at six per cent and the floating rate coupon at 6.2 per cent, it said.

 

The bonds were assigned a subordinated unsecured bond rating of BBB by Capital Intelligence as at January. 

 

The proceeds of the bonds will assist to boost Burgan Bank’s Tier II capital and improve its capital adequacy ratio under the Central Bank of Kuwait’s Basel III framework, and for general corporate purposes.

 

Owing to the importance of the deal, an oversubscription and a strong demand from both regional and international investors was witnessed.

 

Rob Little, counsel at ASAR, said: “We are delighted to have been involved with a successful transaction which was completed during some volatility in the global economy. ASAR has a long established history of acting on landmark bond issuances, and this current transaction is no exception.”

 

Ibrahim Sattout, partner at ASAR, said: “While global and GCC markets remain under pressure, we believe that similar transactions are key to the overall stability of steady economic growth. We acknowledge the challenging environment under which banks in general are operating, and thus we are proud to have successfully represented the joint lead managers in this transaction.”

 

John Cunha, partner at ASAR, said: “We are delighted to have acted on behalf of the joint lead managers on Burgan’s latest landmark bond issuance. Following our recent involvement in other similar transactions, this transaction is a testament to the strength and depth of local and regional financial capital markets in challenging times. 

 

"The successful conclusion of this transaction is the result of the hard work of the joint lead managers, and the relevant regulators in Kuwait such as the CBK and the CMA.”

 

With dedicated offices in Kuwait and Bahrain coupled with its associated offices and relationships, ASAR provides clients across an extensive range of industry sectors with comprehensive legal advice and support for their business activities in Kuwait, across the GCC and beyond. - TradeArabia News Service