Monday 20, March 2017 by William Mullally

Kuwait’s Warba Bank rings market opening bell to celebrate listing of $250 million Sukuk

Warba Bank operates through corporate, retail, treasury and investment business functions, offering a wide variety of innovative banking and investment products and financial services to corporate and retail customers.

Shaheen Al-Ghanem, Chief Executive of Warba Bank, one of Kuwait’s leading banks, today rang the market-opening bell to celebrate the listing on Nasdaq Dubai of a 250 million US dollar Perpetual Tier 1 Basel III compliant Capital Sukuk.

The Sukuk instrument will further strengthen Warba Bank’s capital base and support the bank’s continued growth and development as well as its commitment to Islamic finance. Established in 2010, Warba Bank is expanding its activities in the full range of banking and investment services in Kuwait in compliance with Shari'ah principles, said a media statement.

Warba Bank operates through corporate, retail, treasury and investment business functions, offering a wide variety of innovative banking and investment products and financial services to corporate and retail customers.

As more Kuwaiti companies choose Nasdaq Dubai as a listing venue, the Sukuk reflects the accelerating growth in financial markets ties between the UAE and Kuwait. It also reinforces Nasdaq Dubai’s status as the global leader for Sukuk listings, with a total nominal value of USD 46.31 billion from issuers in the MENA region and beyond.

The bell-ringing ceremony took place in the presence of His Excellency Essa Kazim, Governor of Dubai International Financial Centre (DIFC), Secretary General of Dubai Islamic Economy Development Centre (DIEDC), and Chairman of Dubai Financial Market (DFM), and senior representatives of Warba Bank, as well as Abdul Wahed Al Fahim, Chairman of Nasdaq Dubai and Hamed Ali, Chief Executive of Nasdaq Dubai.

Shaheen Al-Ghanem, Chief Executive of Warba Bank, said, “The success of our Sukuk in attracting investors from Kuwait, the MENA region and beyond reflects the confidence of the market in Warba Bank’s strategy for growth and development across all our business areas including investment, treasury, corporate banking and retail banking. Nasdaq Dubai’s first class listing environment, including its close links with regional and global investors as well as its international regulatory standards, provides important support for this capital-raising initiative.”  

HE Essa Kazim, Governor of DIFC, Secretary General of DIEDC and Chairman of DFM, said, “Warba Banks’s choice of Dubai for its Sukuk listing further strengthens the collaboration between the capital markets of Kuwait and the UAE, which provides attractive opportunities to issuers and investors as well as supporting wider economic relationships within the GCC. The listing also strengthens the growth of Dubai as the global capital of the Islamic Economy under the initiative launched by His Highness Sheikh Mohammed Bin Rashid Al Maktoum, UAE Vice President and Prime Minster, and Ruler of Dubai.”

Warba Bank’s 250 million US dollar Sukuk comprises Perpetual Tier 1 Mudharaba Capital Certificates, non-callable before 14 March 2022, with the initial coupon set at 6.50%. The Sukuk listed on Nasdaq Dubai on March 15, 2017.

Abdul Wahed Al Fahim, Chairman of Nasdaq Dubai, said, “Drawing on our unrivalled network of relationships with regional and international issuers, advisers and investors in the Islamic capital markets, Nasdaq Dubai will expand as a centre for listing Sukuk and other Islamic products. We will further streamline and enhance our listing processes to meet the commercial needs of issuers.”

Hamed Ali, Chief Executive of Nasdaq Dubai, said, “As one of Kuwait’s and the region’s most active and prominent financial institutions, Al Warba Bank is a very significant addition to Dubai’s Sukuk market. We are delighted to support the bank’s expansion across a range of activities by facilitating its capital raising needs and strengthening its links with investors, including through the high visibility that our listing platform provides across the region and internationally. We are in contact with a number of leading Kuwait companies and institutions and look forward to providing them with an effective listing venue that will assist their development strategies.”

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