Boubyan Bank sets yield at 3.95pc for perpetual dollar sukuk

DUBAI: Kuwait's Boubyan Bank on Wednesday set the yield for US dollar-denominated Tier 1 Islamic bonds at 3.95% after receiving over $1.2 billion in orders, a bank document showed.

It had given initial price guidance of around 4.25% for the sukuk, which are designed to be perpetual in nature, but can be called after a specified period. They are non-callable for six years.

Citi, NBK Capital, Standard Chartered , Abu Dhabi Islamic Bank, Boubyan Capital, Emirates NBD Capital, Kamco Invest, Kuwait International Bank and KFH Capital are arranging the deal, which is expected to close later on Wednesday.