Kuwait Finance House Completes KD 200 Million AT1 Sukuk Issuance
Kuwait Finance House (KFH) has announced the successful issuance of a KD 200 million Additional Tier 1 (AT1) Mudaraba Sukuk, described as the first and largest Kuwaiti Dinar-denominated issuance of its kind in Kuwait’s banking sector.
The Sukuk was priced at 200 basis points above the discount rate of the Central Bank of Kuwait, resulting in an annual expected profit rate of 5.50%. According to KFH, investor demand exceeded the target issuance size by more than KD 275 million, with the offering fully subscribed by domestic investors, including private banking and wealth management clients as well as financial institutions.
KFH stated that the issuance is intended to strengthen its capital base, diversify funding sources, and support financing for development projects in Kuwait, including infrastructure and energy initiatives.
The bank noted that KFH Capital and Kamco Invest acted as Joint Lead Managers for the transaction.
According to KFH Capital, the Sukuk is perpetual in nature and may be called after six years from the issuance date. The company also highlighted that it served as Global Coordinator and Joint Lead Manager for the offering.
KFH Capital added that the transaction follows previous Sukuk issuances arranged for KFH, including a USD 850 million Mudaraba Sukuk issued in November 2025 to support the bank’s capital position.
The issuance reflects continued activity in the Sukuk market, with Islamic finance instruments playing an important role in funding corporate growth, development projects, and broader capital market participation.
Source: Kuwait Finance House (KFH)
IFD INDUSTRY IMPACT
The oversubscription of KFH’s Sukuk issuance reflects sustained demand for Shariah-compliant investment opportunities in Kuwait and underscores the growing role of Sukuk as a funding and capital management tool within the Islamic banking sector.
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