Burgan Bank Successfully Prices USD 500 Million in International Bonds

In a strategic move that reflects global investors’ trust, Burgan Bank K.P.S.C.  has successfully priced its USD 500 million five-year senior unsecured international bond, with a spread of 115 basis points above US Treasuries. This proposed issuance, denominated in USD under Regulation S with a fixed coupon rate of 4.875%, to be issued through Burgan Senior SPC Limited under the USD 1.5 billion Euro Medium Term Note (EMTN) program, is expected to reflect the Group’s strong financial position, prudent policies, and sustainable approach to implementing its strategy across its various international operations.

This offering is intended to be sold outside Kuwait. Based on investors’ indication of interests,  the offering was geographically distributed among investors from the Middle East (30%), Europe (33%), and Asia (37%), reflecting the Bank's diverse investor base and global confidence.

Commenting on the successful pricing of the bonds, and the global interests received, Mr. Tony Daher, Group CEO of Burgan Bank, said: “We are particularly proud of this achievement, which underscores Burgan Bank's solid position as a key player in international capital markets. It also reflects investor confidence in the Bank's performance and balanced growth strategy, aimed at achieving sustainable results and reinforce returns for shareholders.”

He added that international investors’ notable demand for this issuance – which exceeded the offering size by more than 3.8 times, with the order book reaching approximately USD 1.9 billion – reflects the Bank's strong reputation in global markets and demonstrates the strength of the Kuwaiti economy and the resilience of the local banking sector.

Standard Chartered Bank, HSBC, Citibank, Kamco Invest, and Mizuho are acting as Global Coordinators on this transaction. Additionally, ADCB, Bank ABC, DBS, ICBC, and Mashreq are acting as Joint Lead Managers. The bond issuance is expected to be listed on the London Stock Exchange’s International Securities Market.

This comes as part of Burgan Bank's strategic plan to diversify funding sources and strengthen its capital base, supporting its operational expansion in Kuwait and regional markets in line with the Kuwait Vision 2035 goals.

The investment-grade credit rating of the issuance, at A by Fitch, and BBB+ by S&P, further enhances its appeal – driving strong interest from international private banking platforms and global asset managers. It further reinforces Burgan Bank’s position as a pivotal banking institution contributing to the country's economic development.