NBK Capital and KAMCO Joint Lead Managers for NBK’s KWD 125M Bond Issue

KUWAIT: December 6, 2015

NBK Capital and KAMCO acted as Joint Lead Managers for NBK’s KWD 125 million Subordinated Tier 2 Basel III – Compliant Bond Issue

• The first investment grade rated (Baa1 by Moody’s) Subordinated Tier 2 issuance in the MENA region
• Al Hamad: This landmark transaction represents the largest private sector, corporate bond issuance in the history of Kuwait
• Sarkhou: This bond issuance enhances the local bond market and an active step towards augmenting the Kuwaiti economy

Watani Investment Company K.S.C.C. (“NBK Capital) and KAMCO Investment Company K.S.C.P. (“KAMCO”) acted as Joint Lead Managers for the National Bank of Kuwait S.A.K.P.’s (“NBK”) KWD 125 million, 10NC5, Subordinated Tier 2, Basel III – Compliant Bonds.

NBK Capital and KAMCO’s joint press release revealed the first investment grade rated (Baa1 by Moody’s) subordinated Tier 2, Basel III – compliant bond issuance in the MENA region, highlighting the underlying credit strength of NBK. This landmark transaction also represents the largest private sector, corporate bond issuance in the history of Kuwait.

The transaction was well received by institutional and high net worth investors, with an oversubscription rate of two times. The issuance proceeds will be used to boost NBK’s Tier 2 capital, as it has been approved as fully eligible Tier 2 capital by the Central Bank of Kuwait under its Basel III framework, and for general corporate purposes.

Mr. Faisal Al-Hamad, Chief Executive Officer of NBK Capital said, “We were proud to act as a Joint Lead Manager on a landmark transaction, which represents the largest private sector, corporate bond issuance in the history of Kuwait, and puts NBK at the forefront of further developing the Kuwait and MENA capital markets.”

Mr. Faisal Sarkhou, Chief Executive Officer of KAMCO said, “We have always been proactive in taking constructive steps towards enhancing the private sector and in turn transforming the Kuwaiti economy. Therefore, we are pleased to have played an active role in successfully completing a landmark transaction of this scope. At KAMCO, we are always on the lookout for opportunities to attract local and regional investors, which is why we consider this bond issuance a breakthrough in enhancing and supporting the local bond market.”

To conclude, NBK Capital and KAMCO extend their gratitude to NBK, the Central Bank of Kuwait, the Capital Markets Authority, and Al-Ruwayeh & Partners (ASAR), the mandated Local Legal Counsel, for their commitment and joint collective efforts in supporting financial institutions, in addition to investors’ support, the driving force behind the success of this transaction.