DUBAI, Sept 27 (Reuters) - Kuwait's Burgan Bank
has hired Citi and Standard Chartered to lead a
planned sale of senior U.S. dollar-denominated six-year bonds, a
bank document showed on Monday.
Other banks on the deal are Bank ABC, Emirates NBD
Capital, First Abu Dhabi Bank, HSBC,
Industrial and Commercial Bank of China, JPMorgan
, Mizuho Securities and NBK Capital.
The unsecured bonds will be of benchmark size, which
typically means at least $500 million, and will be non-callable
for five years, the document from one of the banks showed.
Earlier this month, Burgan Bank received preliminary
approval from Kuwait's central bank to issue up to $500 million
in senior unsecured bonds and last week received approval from
the Capital Markets Authority.
The bonds will be issued under Burgan's Euro Medium Term
Note Programme. They are expected to have a fixed coupon rate
for five years then a floating rate for the final year to
maturity, should the bank not "call" the bonds.
Closing the bond sale will allow Burgan "to reinforce its
long-term liquidity and regulatory liquidity ratios," it has
said in an exchange filing.
Sales of senior bonds are relatively rare from the Gulf's
banks, but Burgan's debt-raising plans follow the country's
biggest lender, National Bank of Kuwait, securing $1 billion
this month via six-year senior bonds non-callable for five
years.
(Reporting by Yousef Saba, Editing by Louise Heavens)
Standard Chartered (STAN)
HSBC Holdings (HSBA)