Acted as Legal Counsel to the Lead Managers of Burgan Bank’s KD 100 Million Perpetual Tier 2 Basel III Compliant Issuance Bonds

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ASAR – Al Ruwayeh & Partners (ASAR), Kuwait’s leading and most prominent corporate law firm, and one of the region’s top tier firms, acted as Kuwait legal counsel to the Joint Lead Managers associated in Burgan Bank’s KD 100 million, 10NC5, Subordinated Tier 2, Basel III — Compliant Bonds. ASAR’s legal counsel was provided to the Joint Lead Managers and Placement Agents namely KAMCO Investment Company K.S.C. P., Gulf Bank K.S.C.P, and Watani Investment Company K.S.C.C.

The bond issuance was comprised of both a fixed and floating rate tranche with the fixed rate coupon at 6% and the floating rate coupon at 6.20%. The bonds were assigned a subordinated unsecured bond rating of BBB by Capital Intelligence as at January 2016. The proceeds of the bonds will assist to boost Burgan Bank’s Tier II capital and improve its capital adequacy ratio under the Central Bank of Kuwait’s Basel III framework, and for general corporate purposes.

The ASAR team comprised Rob Little, Ibrahim Sattout, and John Cunha who worked alongside the joint lead managers in relation to the transaction. Owing to the importance of the deal, an oversubscription and a strong demand from both regional and international investors was witnessed.

Rob Little, counsel at ASAR said: “We are delighted to have been involved with a successful transaction which was completed during some volatility in the global economy. ASAR has a long established history of acting on landmark bond issuances, and this current transaction is no exception.”

From his side, Ibrahim Sattout, partner at ASAR said: “While global and GCC markets remain under pressure, we believe that similar transactions are key to the overall stability of steady economic growth. We acknowledge the challenging environment under which banks in general are operating, and thus we are proud to have successfully represented the joint lead managers in this transaction.”

John Cunha, partner at ASAR commented: “We are delighted to have acted on behalf of the joint lead managers on Burgan’s latest landmark bond issuance. Following our recent involvement in other similar transactions, this transaction is a testament to the strength and depth of local and regional financial capital markets in challenging times. The successful conclusion of this transaction is the result of the hard work of the joint lead managers, and the relevant regulators in Kuwait such as the CBK and the CMA.”

With dedicated offices in Kuwait and Bahrain coupled with its associated offices and relationships, ASAR provides clients across an extensive range of industry sectors with comprehensive legal advice and support for their business activities in Kuwait, across the GCC and beyond.

The firm has been consistently rated as the leading corporate and commercial law firm in Kuwait by reputable legal guides such as the Chambers Global Guide, International Financial Law Review (IFLR) and the Legal 500. In 2015, ASAR was awarded with the IFLR National Law Firm of the Year Award; an award which ASAR has been delighted to receive for the 7th consecutive year. The firm also won the “Best Restructuring Deal in the Middle East” award by IFLR in 2014. Further, the firm won the prestigious “2014 Commercial Litigation Law Firm of the Year” and the “2014 Best Banking and Finance Legal Team –Kuwait” awards from Acquisition International Magazine in 2014. ASAR lawyers have also received multiple awards under different categories in the Fourth Edition of ‘Best Lawyers’ in Kuwait.

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John Cunha

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jcunha@asarlegal.com
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