Boubyan Bank's first sukuk issuance is the first sukuk out of Kuwait since 2007

• Selection of Dubai as listing venue underlines emirate’s expansion as global capital of Islamic economy
• Exchange welcomes strengthening of ties with Kuwait’s capital markets, looks forward to further listings

Source: NASDAQ Dubai. 

Adel Abdulwahab AlMajed, Vice Chairman and CEO of Kuwait-based Boubyan Bank, rang the market-opening bell on 1 June to celebrate the listing on Nasdaq Dubai of the bank’s first-ever sukuk issuance, valued at US$250 million. 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 Hamed Ali, Chief Executive of Nasdaq Dubai.

The issuance, which was more than five times oversubscribed, marks the first sukuk out of Kuwait since 2007, the first Kuwaiti bank sukuk and the first Basel III compliant tier I sukuk worldwide. It is also the first tier I sukuk out of the region in 2016.

The listing by a prominent GCC financial institution underlines Dubai’s status as the global leader for sukuk listings, with a total nominal value of US$44.06 billion from issuers in the Middle East and beyond.

HE Essa Kazim, Governor of DIFC, Secretary General of DIEDC and Chairman of DFM, said: “This listing by a major Kuwait entity further advances cooperation between GCC states in the capital markets sector, as well as 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, Prime Minister, and Ruler of Dubai. Dubai looks forward to welcoming further listings from GCC and other issuers that will facilitate their success and enhance mutually beneficial economic development.”

AlMajed said: “Boubyan continues to be one of the fastest growing banks in Kuwait and the listing of our sukuk on the region’s international exchange enhances our global profile and strengthens our links to a wide range of Islamic and other investors around the world. Nasdaq Dubai provides our inaugural Islamic bond with high visibility in a respected listing environment regulated to international standards.”

Boubyan Bank’s US$250 million sukuk listed on Nasdaq Dubai on May 17. It was the 8th sukuk listing on the exchange in 2016.

With sukuk issuance taking a growing share of the debt markets in the GCC and many other countries, Dubai’s role as a centre of excellence for listing Islamic instruments is poised for further expansion. Total new sukuk issuance with a maturity of more than 18 months in the GCC, Malaysia, Indonesia, Turkey, Singapore and Pakistan reached US$11.1 billion in the first quarter of 2016, according to Fitch Ratings. This amounted to 39% of total bond and sukuk issues in those countries in the quarter, the highest proportion for eight years.

Saleh Al Ateeqi, Chief Executive Officer of Boubyan Capital Investment Company said: “Boubyan Capital ensured that the first sukuk issuance to be managed by the company was the Boubyan Bank issuance, because this is a very unique event, being the first issuance of sukuk in the world for the enhancement of tier 1 capital in compliance with the requirements of Basel III.”

Abdul Wahed Al Fahim, Chairman of Nasdaq Dubai, said: “The sukuk sector globally including Dubai is reaping the benefits of many years of development and infrastructure building, which has created the right technology and regulatory framework as well as the commercial knowhow to spur further growth. Nasdaq Dubai is working to further enhance its swift and responsive sukuk listing process, as well as its extensive post-listing services.

Hamed Ali, Chief Executive of Nasdaq Dubai, said: “This listing by Boubyan Bank represents a significant strengthening of ties with Kuwait’s financial markets and we look forward to welcoming further Kuwaiti listings on our platform, so that they can benefit from our close regional and global links with market participants and the high visibility that we provide. We will introduce further innovation and product development across the capital markets to meet the evolving needs of Kuwaiti and other issuers and investors.”

Interested?

AlMajed is available on Twitter at @adelaalmajed

posted from Bloggeroid

Boubyan Bank organises Quran Memorisation Competition

Boubyan Bank is organising the second Qur’an Memorization Competition, which is open to all children with priority given to those from customers.

The competition has categories for children aged seven to 12, and for teens aged 13 to 17, divided by gender. Cash prizes range from KD100 to KD350.

The younger ones will compete on Surah An-Naziat while the teens are to memorise Surah An-Najm. Participants should follow Quran recitation rules (tajweed). Male contestants will recite on June 12 and 13 and females on June 14 and 15. Each session will take place after tarawih prayers, at 10pm.

Interested?

Register by 6 June 2016

posted from Bloggeroid

Boubyan Bank planning sukuk issuance in 2016

Boubyan Bank, an Islamic bank in Kuwait, has recorded a profit growth of 23% in Q116, amounting to net profits of KD 9.1 million.

Adel Abdul Wahab Al-Majed, the Bank’s Vice Chairman and CEO, said that this growth was achieved despite a highly competitive environment. Al-Majed also stated that the bank will issue sukuk this year to enhance the capital base through CET1 instruments as per Basel III instructions on a mudarabah basis.

posted from Bloggeroid

Boubyan Bank introduces Mini Bank branches in Kuwait

Boubyan Bank, one of the top Islamic banks in Kuwait, has introduced its “Mini Bank” concept to Kuwait. The Mini Bank, launched in cooperation with NCR, allows the bank to expand its presence in new locations where it cannot justify a full-size branch.

Source: Boubyan Bank website.

The Mini Bank, powered by NCR Interactive Teller, enables Boubyan’s centrally-located video tellers to remotely deliver 95% of teller services typically available at a traditional branch, across more hours and locations. The first branch will open at the Kuwait International Airport, and will offer teller services from 8 am to 2 am, seven days a week.

NCR Interactive Teller is ATM-based technology that not only lets people talk to live remote teller, but also gives the teller remote control over the machine to conduct transactions, such as cash deposits and dispense money in specific denominations. Transfers between accounts as well as cash or cheque acceptance without a card can also be performed. Security is maintained not only through the traditional card and pin, but also through a UV-enabled civil ID scanner and signature pad to authenticate customers and confirm their approval to conduct transactions.

Dr. Waleed Al-Hasawi, Boubyan Bank’s Head of IT, commented, “The Mini Bank is one of many technology innovations developed in partnership between Boubyan Bank team and NCR Corporation. Boubyan Bank is leading the way when it comes to implementing new technology innovations as part of our information technology strategy to offer Boubyan Bank customers a differentiated customer experience.”

Fahd Al-Fawzan, General Manager of Sales and Distribution Channels, Boubyan Bank, added that the bank more NCR Interactive Teller Machines will be installed at prime locations in the country based on customer feedback.