Al Tamimi & Company, a leading law firm in the Middle East, has acted as legal counsel for Boubyan Bank, a leading Kuwaiti Islamic bank, in its issuance of sukuk worth $250 million.    

The transaction is the first sukuk issued by a Kuwaiti bank to enhance Tier 1 Capital. The transaction used a Mudarabah structure in order to ensure shari’a compliance. It will be listed in the Nasdaq market as well as the Irish Stock Exchange and will be priced at 6.75 per cent, a statement said.

Boubyan Capital, the investment arm of Boubyan Bank, served as the global coordinator for the issuance along with Standard Chartered and HSBC.  Other financial institutions involved in the issuance as bookrunners and joint lead managers include NBD Capital, Dubai Islamic Bank, Emirates, KFH Capital, and the National Bank of Kuwait.   

The Al Tamimi team was led by head of office and partner, Alex Saleh, as well as senior associate Omar Handoush, associate El Hassan Abdelrazek and associate Abdullah Masud.  

Saleh, commenting on the transaction, said: “We are very excited to have had the opportunity to work on the first Tier 1 capital sukuk issuance emanating out of Kuwait with Boubyan Bank.  We expect that this transaction will serve as a template for other Islamic banks in Kuwait and the region as more Islamic banks will try to increase their liquidity through the issuance of Shari’a compliant debt instruments.”

Al Tamimi & Company’s Kuwait office operates through its joint venture with Kuwaiti lawyer Yaqoub Yousef Al Munayae.   -TradeArabia News Service