KIB Group, represented by KIB Invest, acts as Joint Lead Manager in landmark USD 700 million Sukuk issuance by First Abu Dhabi Bank

Kuwait International Bank (KIB) Group, through its investment arm KIB Invest, announced its appointment as Joint Lead Manager in the successful issuance of a USD 700 million five-year senior unsecured Sukuk by First Abu Dhabi Bank (FAB), one of the region’s leading financial institutions.

This issuance marks a strong return by GCC financial institutions to global capital markets, representing the first public unsecured sukuk issuance by a UAE financial institution following a period of subdued primary market activity across the GCC. It also underscores the resilience of the sukuk market and its ability to attract international investors.

The benchmark transaction further reflects the continued demand of high-quality GCC banking credits, with KIB Group entrusted to support a strategically important issuance during an important period for regional debt capital markets. KIB Group’s participation during the book-building process helped reinforce investor demand and added positive momentum to the successful execution of the transaction.

Issued under a Wakalah/Murabaha structure, the Sukuk was priced on 6 May 2026, with settlement on 13 May 2026, and will mature on 13 May 2031. The issuance highlights the depth of liquidity available for leading GCC financial institutions and the continued relevance of Islamic capital markets as a key funding channel across the region.

Commenting on the issuance, Ma’ab Mohammed Al-Qassem, General Manager of International Banking and Financial Institutions at KIB, stated: “We are proud to have been entrusted with a key role in this landmark transaction for First Abu Dhabi Bank. This mandate reflects the strength of KIB Group’s relationships across the region’s leading financial institutions and our growing role in strategically important capital markets transactions.”

Al-Qassem added: “The strong oversubscription levels, significant tightening from initial guidance, and smooth execution of this Sukuk demonstrate both the quality of the issuer and the depth of demand for GCC banking credits. Despite the prevailing geopolitical backdrop, KIB Group, represented by KIB Invest, contributed to the positive momentum during the book-building process, adding value to the success of the transaction. This achievement further strengthens our capital markets track record and supports our commitment to contributing to the development of Islamic capital markets across Kuwait, the GCC, and international markets.”

From his side, Jamal Hamad Al Barrak, Chief Executive Officer of KIB Invest, stated: “We are pleased to have acted as Joint Lead Manager on this landmark issuance. This participation clearly reflects our growing presence in international markets and demonstrates the Company’s ability to play a pivotal role in major cross-border transactions. The transaction has shown that, even amid geopolitical volatility, sukuk with a robust structure and strong credit rating remain the preferred and secure choice for investors, while also helping reinvigorate capital markets activity across the region.”

He highlighted that, “The transaction was successfully executed within a single trading day, with initial price thoughts announced at approximately 115 basis points over US Treasuries shortly after the opening of the GCC markets. Strong investor momentum enabled FAB to tighten pricing by 30 basis points to a final reoffer spread of US Treasuries plus 85 basis points, with the Sukuk priced at an expected profit rate and reoffer yield of 4.859%. The 30-basis-point tightening was achieved in a single move, with the final spread pricing inside fair value and reflecting a negative new issue premium.”

Al Barrak further noted: “The transaction attracted broad and diversified demand from regional and international investors. The orderbook peaked at approximately USD 1.7 billion, before closing at USD 1.45 billion excluding JLM interest, representing more than two times oversubscription.”

The Sukuk issuance carries ratings of Aa3 from Moody’s and AA- from Fitch, in line with FAB’s senior obligor ratings of Aa3, AA-, and AA- from Moody’s, Fitch, and S&P respectively, all on stable outlooks. The Sukuk will be listed on the Main Market of the London Stock Exchange and is governed by English and UAE law.

KIB Invest acted alongside a syndicate of leading regional and international Joint Lead Managers, including Abu Dhabi Islamic Bank, Arab Banking Corporation, Dubai Islamic Bank, First Abu Dhabi Bank, HSBC, Industrial and Commercial Bank of China, KFH Capital, and Standard Chartered.