Dentons advises Ahli United Bank K.S.C.P. on their USD600 million Tier 1 sukuk issuance

July 2021

Dentons has advised Kuwait’s Ahli United Bank K.S.C.P. (AUBK) on the successful issuance of USD600 million Tier 1 capital certificates, which attracted subscription orders exceeding USD1.8 billion. The transaction was successfully completed on June 17, 2021, and the issuance was made through a new special purpose vehicle (SPV) issuer incorporated in the Cayman Islands, with Citigroup, HSBC, Standard Chartered Bank, Abu Dhabi Islamic Bank, Kamco Invest, KFH Capital and Kuwait International Bank as joint lead managers.

AUBK was assigned long credit term ratings of A2 (stable outlook) by Moody’s, A+ (negative outlook) by Fitch and A+ (stable outlook) by Capital Intelligence Ratings. The issuance was dual listed on the regulated market of Euronext Dublin and on Nasdaq Dubai, and was offered to sophisticated investors outside the US in reliance on Regulation S under the US Securities Act 1933.

Dentons also advised AUBK on their simultaneous tender offer for their USD200 million capital certificates issued in 2016. Part of the issue proceeds of AUBK’s 2021 Tier 1 issuance were used to settle the capital certificates that had been tendered.

Debt Capital Markets partner Alex Roussos, based in Dentons’ Dubai office, commented, “We are delighted to have worked with AUBK on yet another landmark transaction. AUBK’s successful completion of its tender offer and new issuance is testament to the strength and depth of capital markets in Kuwait and the broader region, the increasing sophistication of capital markets participants and their ability to execute complex transactions. We’re seeing more and more issuers look at proactively managing their liabilities and their capital position and that has enabled them to build solid reputations amongst the international investor community”.

The Dentons team in Dubai was led by partner Alex Roussos, with assistance from senior associate James Osun-Sanmi, associate Sana Siddiqui, trainee Moayad Al Zahrani and paralegal Faris Al Ramahi.