Kuwait central bank approves KFH $1 bln Tier 1 sukuk

Kuwait Finance House’s planned Tier 1 sukuk of up to $1 billion or its equivalent in other currencies has been approved by the central bank, it said in a bourse filing on Sunday (May 30).

KFH was rated A+ with a negative outlook by Fitch in April. The negative outlook reflects on the Kuwaiti sovereign rating as KFH’s issuer default ratings are driven by support from the state, said Fitch.

The bank was hit by the economic slowdown caused by the pandemic last year, posting a decrease in net profit of 30% mainly due to a 44% rise in impairment charges.

It has since seen an uptick in performance, reporting a 12.9% increase in net profit for first-quarter 2021 compared to the same three months last year.

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