Business & Finance
Kuwait's Burgan Bank plans Tier 2 dollar bonds
- Tier 2 bonds are a form of subordinated debt, ranking ahead of equity but below senior bonds.
DUBAI: Kuwait's Burgan Bank has hired banks to arrange investor calls ahead of a planned issuance of US dollar-denominated Tier 2 bonds, a document issued by one of the banks and reviewed by Reuters showed on Monday.
Tier 2 bonds are a form of subordinated debt, ranking ahead of equity but below senior bonds.
Burgan - Kuwait's second-largest conventional bank by assets - has hired Citi and Standard Chartered as joint global coordinators. Other banks on the deal are Bank ABC, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, JPMorgan, Kamco Invest, Mizuho Securities, MUFG, and NBK Capital.
Burgan Bank is rated A+ by Fitch, A3 by Moody's and BBB+ by S&P.
The planned debt sale is expected to have an A-(minus) rating by Fitch, the document said.
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