Boubyan Bank - Launches New Sharia-Compliant Certificates of Deposit Program

(MENAFN- Bank Boubyan) Boubyan Bank announced the launch of a new program to issue Sharia-compliant certificates of deposit with a total value of USD 2 billion in a pioneering step—the first of its kind by a Kuwaiti bank. This comes as part of the bank’s strategy to diversify liquidity sources, reinforce its financial stability, and tap into global investments.
The program offers short-term deposit certificates to investors, with tenors ranging from one month to one year. This program comes in response to the growing demand from international investors for this type of certificates.
A Strategic Vision and Liquidity Diversification
Abdul-Salam Al-Saleh, CEO of Corporate Banking, Financial Control, Treasury, and Legal Affairs, stated: “The launch of the CDs' Program reflects Boubyan Bank’s growth-driven approach when it comes to banking products and liquidity diversification. It also reinforces our regional and global presence, particularly in the sukuk market. This issuance reflects investors' confidence in the bank's financial strategy, thus reiterating the prestigious reputation of Boubyan, built on its notable achievements over the past years across various domains.”
Mr. Al-Saleh went on to add: "The program will enable the bank to attract a new class of investors, support its risk diversification strategy, and enhance its resilience to market fluctuations, while further strengthening Boubyan’s position in the global financial scene."
On his part, Mr. Adel Al-Mutairi, Boubyan Bank's Treasurer, commented: "The launch of this program demonstrates Boubyan Bank's commitment to offering innovative Sharia-compliant solutions, and reinforces the bank’s presence in regional and global markets—particularly in Asia, where demand for short-term instruments is growing constantly."
"Certificates of Deposit have gained a significant traction as a reliable investment instrument, which gives the bank a unique opportunity to broaden its international investor base, expand its global presence, secure more diversified and stable funding channels, and support its sustainable long-term growth.", he added.
Al-Mutairi added that the program aligns well with the bank’s strategy for ongoing growth, diversifying funding sources, and ensuring liquidity stability, and he further highlighted the bank's commitment to compliance with regulatory standards.
He concluded: "In light of the evolving landscape in financial markets, the Program contributes positively to our compliance with CBK's key liquidity ratios, as well as Basel III requirements."

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