(MENAFN- Kuwait News Agency (KUNA)) The National Bank of Kuwait is considering issuance of KD, Basel 3-compliant subordinated bonds, worth up to KD 125 million, the NBK said in a statement released on Sunday.
"The issuance would be used to increase the bank's Tier 2 capital as per Basel III requirements and the CBK instructions," the NBK statement said.
The NBK), the largest bank in Kuwait, (rated Aa3 by Moody's, A+ by S&P and AA- by Fitch), is considering issuing Kuwaiti Dinars up to 125 million Tier 2 subordinated bonds.
The issuance would be used to boost NBK's capital as per Basel III requirements and the directives of the Central Bank of Kuwait. The NBK has received final approval from the Central Bank of Kuwait and a preliminary approval from the CMA (Capital Market Authority) on the issuance. In the meantime, the bank is currently in the process of obtaining remaining required approvals.
The bank has mandated NBK Capital and KAMCO as Joint Lead Managers and Arrangers for the transaction.
NBK was founded in 1952 as the first indigenous bank and the first joint stock company in Kuwait and the Gulf Region. NBK reported profits of USD 894 million (KD 261.8 million) for 2014. NBK's total assets were USD 74.4 billion (KD 21.8 billion) at the end of 2014, while shareholder equity stood at USD 8.6 billion (KD 2.5 billion).
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