Warba Bank Prices KD 80 Million Sukuk at 5.5%, Reflecting Strong Investor Confidence

By the Editorial Team · Monday, November 2, 2026

Warba Bank has issued an additional KD 80 million AT1 Sukuk at a 5.50% profit rate, exceeding initial plans due to strong local investor demand. This issuance strengthens the bank's capital base amid challenging economic conditions and highlights the growing depth and resilience of Kuwait’s Islamic capital markets.

Warba Bank has priced an additional tier 1 (AT1) Sukuk issuance totaling KD 80 million, offering a profit rate of 5.50%, according to a statement released November 1 in Kuwait City. The Sukuk, aimed primarily at domestic investors, was initially planned at KD 75 million but was increased to KD 80 million in response to strong demand from a diverse range of financial institutions, private banking clients, and wealth management investors.

The issuance reflects Warba Bank’s ongoing strategy for capital and liability management and underscores the growth and sophistication of Kuwait’s Islamic capital markets. Yusuf Chorghay, Acting Chief of Investment Banking Group at Warba Bank, highlighted that the 200 basis point margin over the Central Bank of Kuwait’s discount rate signals robust investor confidence in the bank’s financial strength and long-term strategic direction. Chorghay noted that the high level of local investor participation is especially remarkable given the current geopolitical and economic uncertainties affecting regional and global markets.

Joint lead managers and bookrunners for the transaction included KFH Capital, Kuwait Financial Centre “Markaz,” and Warba Bank itself. Mohammad H. AlHajeri, Chief Investment Banking Officer at KFH Capital, described the strong investor demand as evidence of the liquidity and resilience within Kuwait’s Islamic capital markets. He emphasized KFH Capital’s role not only as a joint lead manager and bookrunner but also as subscription and settlement agent, underscoring the firm’s comprehensive capabilities across the transaction lifecycle.

Ali Khalil, Chief Executive Officer of Kuwait Financial Centre “Markaz,” commented that the success of the Sukuk issuance demonstrates both investor confidence in Warba Bank and the broader stability of Kuwait’s debt capital markets. Khalil pointed to Kuwait’s substantial sovereign financial reserves, the stability of the Kuwaiti dinar supported by prudent monetary policy and effective central bank supervision, and a resilient banking sector as key factors contributing to favorable financing conditions. He stated that the transaction represents a significant step in developing deeper and more diversified debt markets in the country.

The Sukuk issuance, which is callable after five years, is designed to bolster Warba Bank’s capital position and financial resilience, supporting the bank’s goals for sustainable growth moving forward.

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