19/02/2025
Share:
19/02/2025
Share:
KUWAIT CITY, Feb 19: Kuwait International Bank (KIB) announced joining the International Islamic Liquidity Management Corporation (IILM) as a Primary Dealer of Short-Term Sukuk, confirming its commitment to fortifying and advancing the Sukuk market and enhancing the Bank’s role as a market maker. This further aligns with KIB’s vision to become the Islamic bank of choice in Kuwait as well as its strategic goals to expand its suite of innovative and high-quality offerings and contribute to the advancement of the local and regional Islamic finance industry. The signing ceremony took place at the Bank’s headquarters in the presence of KIB’s General Manager of the Treasury Department, Mohammed Al-Duwailah and CEO of IILM, Mohamad Safri Shahul Hamid.
In this regard, Al-Duwailah said: “It is an honor to be part of IILM’s global network of esteemed Primary Dealers whose efforts and commitment continue to develop the Islamic banking sector and add to its regional and global competitiveness. As a Primary Dealer, we are delighted to offer domestic and regional banks the leading high-quality, low-risk, short-term IILM Sukuk, enhancing our role in meeting the liquidity requirements of institutions that provide Islamic financial services.”
He added: “With our new role as a Primary Dealer, KIB is presented with a valuable opportunity to not only promote Islamic financial instruments, such as the competitive IILM USD Sukuk, but also strengthen the stability and growth of the Islamic finance ecosystem. Alongside other Primary Dealers worldwide, we are excited to embark on this new chapter of regional and global exposure as we pursue shared success for KIB and IILM.”
On his part, Mohamad Safri said: “We are delighted to welcome KIB to IILM’s global network of esteemed Primary Dealers. Kuwait has long been a key player in the Islamic finance industry, with its well-established banking sector and strong regulatory support for Shari’ah-compliant financial instruments. As a new Primary Dealer, KIB’s participation reinforces the increasing demand for high-quality, short-term Sukūk in Kuwait and the region, underscoring the vital role that the Kuwaiti financial institutions have been playing in deepening the Islamic liquidity management solutions.”
“As Kuwait’s Islamic banking sector continues to grow and evolve, KIB’s participation in the IILM highly rated short-term Sukūk program will open new frontiers and enhance liquidity options for the Islamic market participants locally, regionally, and globally. We look forward to an enduring partnership with KIB in strengthening cross-border liquidity management and advancing the Islamic financial ecosystem globally,” Safri added.
As per the dealership agreement, KIB is set to contribute to the program’s infrastructure expansion by committing to issuing a pre-agreed minimum of all the IILM short-term Sukuk. Other roles include supporting the IILM secondary market activity by providing two-way quotes; contributing to the liquidity and price transparency in the secondary market; and broadening the IILM market regionally and globally by promoting the short-term Sukuk to new segments of investors worldwide.
It serves to note that the IILM’s short-term Ṣukūk issuance program is rated “A-1” by S&P and “F1” by Fitch Ratings, with total issuance amounting to more than USD 110 billion since the program inception in 2013.
In committing to its new responsibilities as an IILM Primary Dealer, KIB joins a cohort of the finest Islamic banks, including Kuwait Finance House, Boubyan Bank, Meethaq Islamic Banking from Bank Muscat, Abu Dhabi Islamic Bank, Affin Islamic Bank, Al Baraka Turk, CIMB Islamic Bank Berhad, Dukhan Bank, First Abu Dhabi Bank, Maybank Islamic Berhad, Qatar Islamic Bank, Standard Chartered Bank, and Golden Global Investment Bank.
In addition to the IILM short-term Sukuk, KIB has a robust Shariah-compliant products and services portfolio that offers customers varying options that match their needs. These include Murabaha, Wakala, Istisna’a, Musawama and Ijara. As a ‘Bank for Life’, KIB is committed to deepening customer relationships by expanding its portfolio and delivering innovative solutions that align with the evolving market demands while contributing to the growth of the Islamic finance sector.
