© Reuters. The logo of Citi bank is pictured at an exhibition hall in Bangkok, Thailand, May 12, 2016. REUTERS/Athit Perawongmetha/Files
DUBAI (Reuters) – Kuwait’s Burgan Bank has hired Citi and Standard Chartered (OTC:) to lead a planned sale of senior U.S. dollar-denominated six-year bonds, a bank document showed on Monday.
Other banks on the deal are Bank ABC, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, Industrial and Commercial Bank of China, JPMorgan (NYSE:), Mizuho Securities and NBK Capital.
The unsecured bonds will be of benchmark size, which typically means at least $500 million, and will be non-callable for five years, the document from one of the banks showed.
Earlier this month, Burgan Bank received preliminary approval from Kuwait’s central bank to issue up to $500 million in senior unsecured bonds and last week received approval from the Capital Markets Authority.
The bonds will be issued under Burgan’s Euro Medium Term Note Programme. They are expected to have a fixed coupon rate for five years then a floating rate for the final year to maturity, should the bank not “call” the bonds.
Closing the bond sale will allow Burgan “to reinforce its long-term liquidity and regulatory liquidity ratios,” it has said in an exchange filing.
Sales of senior bonds are relatively rare from the Gulf’s banks, but Burgan’s debt-raising plans follow the country’s biggest lender, National Bank of Kuwait, securing $1 billion this month via six-year senior bonds non-callable for five years.
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
For all the latest Business News Click Here
For the latest news and updates, follow us on Google News.
Denial of responsibility! NewsBit.us is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.
