After obtaining the approvals from the Central Bank of Jordan and the Jordan Securities Commission, Jordan Kuwait Bank launched the subscription to the first local perpetual bond via two parallel tranches in Jordanian Dinars and United States Dollars for a total value of USD 125.5 million, classified as Additional Tier I Capital in line with Basel III Accords. This is the first issuance of perpetual bonds on the Amman Stock Exchange.
The first tranche of USD 90.0 million was fully subscribed to through a private placement to the Bank’s shareholders and clients and will not be listed on the Amman Stock Exchange. The second tranche of JD 25.2 million, is currently offered for public subscription and will be listed on the Amman Stock Exchange. The JD denominated bonds will have a fixed interest rate of 8.50% for the first 24 months, after which it will be adjusted based on the Central Bank of Jordan’s re-discount rate plus a margin of 1.25%.
Mr. Haethum Buttikhi, the CEO of Jordan Kuwait Bank, expressed his gratitude to the Central Bank of Jordan and the Jordan Securities Commission for their continuous support in facilitating this issuance. He emphasized that this issuance, being the first of its kind in Jordan, will contribute to the growth of the banking sector in the Kingdom, which has consistently served as a vital component of its economy. He also emphasized that the issuance is an important step towards the Bank's regional expansion plans, particularly following its recent acquisitions of Bank of Baghdad and UAE-based BHM Capital Financial Services.
Investing in these bonds allows investors to participate in the Bank's Additional Tier I Capital while earning an attractive return on their funds. The interest on these bonds will be paid quarterly on the 23rd of March, June, September, and December of each year, in addition to being tradeable on the Amman Stock Exchange.
Subscription application is available at Jordan Kuwait Bank branches across the Kingdom, as well as at the offices of the Lead Manager, United Financial Investments Company, a subsidiary of the Bank. The 15-day subscription period started on Sunday June 4, 2023, and will be closed on Thursday, June 22, 2023.