Sot Burkan.mp4

CNBCArabia

5/19/2024

Transcript

00:00 The first of its kind to issue permanent bonds in Kuwaiti dinars,

00:06 which includes the first chip of the capital.

00:08 The amount we were looking at, not less than 150 million,

00:12 was a very large amount for the market and the tools that were published in the market before in this field,

00:20 since it is the first of the first capital chips.

00:23 Of course, at the beginning, we had the issuance of all of them from Kamco Invest and the Gulf Bank.

00:32 And, thank God, we were able to help them attract a large number of investors

00:39 to write above the good, the honest and the one that is more than the required amount.

00:44 And the operation was a great success.

00:47 We issued two chips.

00:50 The first was a permanent bond and the second was a variable bond.

00:54 The first was a 50% bond and the second was a 15% bond,

00:59 above the price of the central bank.

01:02 We can point out that this process and the price that was paid for it

01:08 was better than the price that was paid for it in 2019,

01:12 when we issued the same bonds from the same chip in dollars.

01:16 The price of the treasury bonds for five years was almost equal to 400 points of interest.

01:26 Currently, the US bonds for five years are trading at a rate of 4.5,

01:32 while the interest rate of the central bank is 4.25.

01:37 Also, the interest that we issued is 3% compared to the previous issuance, which was 4%.

01:44 This is equivalent to a profit of about 1.25% of the cost of the bond.

01:55 Also, as they say, tightening in the credit spread,

01:59 which means reducing the interest rate.

02:02 This is a very positive thing for the bank.

02:05 We are taking advantage of this to increase the price of our banking equipment and liquidity.

02:15 This will have a positive impact on the bank in general.

02:20 Mr. Abdullah, the financial status of the central bank remains good.

02:25 Why is the return to the debt tools, in light of the general conditions in the global economy,

02:29 rising interest rates? Where will this cover go?

02:35 Of course, these debt tools, especially the first-party central bank tools,

02:41 are among the natural tools in the Basel III system.

02:46 It is not a routine thing. Most banks issue it.

02:49 This indicates that there is a side of investors and trust in the bank.

02:56 For us, this is a routine thing according to the current Basel standards.

03:00 This will increase the capital, and also add to the bank's liquidity.

03:05 This will help us implement the long-term and short-term strategy,

03:11 and provide the sides of capital and liquidity to expand our areas as a bank.

03:21 As you know, Kuwait is looking towards 2025 as a future vision.

03:27 As a bank, we want to be a major contributing factor in this vision.

03:32 We want to enhance our ability to grow.

03:39 Mr. Abdullah, how does the export market rate the loans in Kuwait and the acceptance of investors?

03:49 Unfortunately, the Kuwaiti export market is very weak.

03:52 Kuwait, as an investment country, does not have many assets.

04:00 As we know, the financial securities market relies heavily on banks

04:07 as a major pillar in accepting capital.

04:12 This is due to the trust of investors, as banks are monitored by the central bank.

04:21 We are grateful for the efforts in monitoring the trust of investors.

04:28 For us, as a bank, we want to show other assets and diversities to investors in the securities market.

04:36 This is a step to enhance the acquisition and preservation of Kuwaiti assets.

04:42 Over time, we see that the Kuwaiti capital sometimes has to leave the country to work.

04:51 On the contrary, this is an opportunity for us as a contributing factor in the Kuwaiti economy and the future vision of Kuwait

04:57 to export this share in Kuwaiti dinars, preserve the assets and attract investors from all sectors.

05:04 We hope that other banks will follow suit.

05:08 Thank you.

05:09 I would like to ask you about the evidence of this export, which is based on Kuwaiti dinars, not dollars.

05:16 The bank also said that this export is the first of its kind in the nature of export.

05:21 This is important for us.

05:27 We took a bold step to try to strengthen the Kuwaiti investor and attract investment.

05:35 We saw very positive and effective responses, as the demand for the export increased in terms of the required amount.

05:42 This strengthens our confidence in the local market and starts to strengthen the spread of financial performance.

05:53 In the end, we know that as a future vision for Kuwait, we need to attract and diversify the tools that attract the heads of money.

06:03 This is a positive factor for the future.

06:06 Yes.

06:07 Mr. Abdullah Abdel-Majid, Chief Executive Officer of the Bank of Barqan, you were with us from Kuwait.

06:12 Thank you very much.

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