Kuwait Finance House Raises $1 Billion Through Sukuk Deal
Kuwait Finance House (KFH) has successfully raised $1 billion by issuing a five-year sukuk after receiving strong interest from investors. The deal was oversubscribed, meaning investor demand was much higher than the amount offered, according to a filing released on Wednesday.
The five-year sukuk was priced at 85 basis points above US Treasury bonds. Because of high demand, KFH was able to improve the price compared to its initial target. The sukuk carries a fixed profit rate (coupon) and yield of 4.563% and was offered at face value. Earlier guidance had suggested a higher pricing level of around 120 basis points over Treasuries.
The total investor demand reached more than $2.1 billion, not including interest from the joint lead managers. This strong demand allowed KFH to price the sukuk at the lower end of expectations.
The sukuk is rated A2 by Moody’s and A by Fitch, with both agencies giving it a stable outlook. It was issued as a senior unsecured fixed-rate sukuk using a Wakala and Murabaha structure. The issuance falls under KFH’s $4 billion Trust Certificate Issuance Programme.
This deal marks the third $1 billion sukuk issued under the programme. The bank previously launched similar sukuk tranches in January 2024 and January 2025, showing its continued access to global debt markets.
The issuance was completed on Tuesday after KFH received all required regulatory approvals. Settlement is scheduled for January 13, according to information filed with regulators. The sukuk certificates will be listed on the London Stock Exchange’s International Securities Market, giving international investors easier access to the deal.
The sukuk is governed by English law and is part of KFH’s wider strategy to diversify its funding sources. The bank aims to strengthen its balance sheet, improve liquidity, and extend the maturity of its funding through such issuances.
KFH, which is the first Islamic bank established in the Gulf region, said the sukuk would have a positive financial impact. The bank added that the funds raised will support liquidity and help manage long-term funding needs.
KFH Capital acted as the global coordinator for the deal. Several regional and international banks joined as joint lead managers and bookrunners. These included Abu Dhabi Islamic Bank, Bank of China, Boubyan Bank, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, Mizuho, Standard Chartered Bank, and the Islamic Corporation for the Development of the Private Sector.
The strong response to the sukuk highlights continued investor confidence in KFH and the Islamic finance sector, even amid changing global market conditions.
Published: 8th January 2026
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