Al Ahli Bank of Kuwait Said to Consider Debut Dollar Bondby and
Bank may raise about $500m through sale of senior bonds
Kuwait to post first deficit in years after oil slump
Al Ahli Bank of Kuwait is considering its first sale of dollar-denominated bonds, four people familiar with the plan said, as the lender seeks long-term funds to boost growth.
The bank may raise about $500 million this year, the people said, asking not to be identified as the information is private.
Banks from the six-nation Gulf Cooperation Council, which includes the United Arab Emirates and Kuwait, have been among the biggest sellers of bonds this year as they sought to take advantage of low borrowing costs to boost cash holdings. Brent crude has lost more than 50 percent of its value since August 2014, leading Kuwait to post the first budget deficit in years.
Kuwait is also planning to raise about $10 billion from the international debt market.
Al Ahli Bank is aiming to sell the debt after August, but may decide against the issuance if market conditions aren’t favorable, the people said.
A spokesman at Al Ahli Bank declined to comment.