Commercial Bank of Kuwait cancels KWD 120 million bond
In a statement to the Kuwait Stock Exchange on Tuesday, 4 November, Commercial Bank of Kuwait (CBK) announced that it was cancelling the sale of its proposed KWD 120 million bond. The bank said the decision was taken as a result of ‘legislative and technical issues’ but did not elaborate further.
The 10-year bond had been assigned a provisional Long-Term Issue Rating of ‘BBB-‘ by Capital Intelligence with a ‘Stable’ outlook. CI said the rating is supported by strong asset quality and more than full loan loss reserve (LLR) coverage at the bank, together with both a strong capital position and strong liquidity.
CBK is Kuwait’s fifth biggest bank and is currently preparing to convert to full compliance with Shari’ah. The subordinated bond would have been used to boost the bank’s Tier 2 capital. KIPCO Asset Management Co (KAMCO)had been named as the sole lead manager.
Source: cpifinancial-Commercial Bank of Kuwait cancels KWD 120 million bond
