Boursa Kuwait approved to list bonds and sukuk

Boursa Kuwait will start listing bonds and sukuk (sharia-compliant bonds) after receiving clearance from the country’s market regulator.

The Capital Markets Authority (CMA) recently introduced a new regulatory and legislative framework for bonds and sukuk.

Boursa Kuwait is now ready to receive listing applications and operate the bonds and sukuk trading platform, CEO Mohammad Saud Al-Osaimi said in a statement. 

The instruments will be listed once they meet the required regulatory conditions, he said.

The launch comes despite geopolitical challenges since the start of the US-Israeli war with Iran.

Al-Osaimi said the exchange’s trading systems are operating at full efficiency and reassured market participants of the market’s stability.

CMA resolution 38 establishes a framework covering the full life cycle of domestic and foreign bonds and sukuk in Kuwait’s capital market. This includes listing, daily trading and early redemption or maturity. It also outlines issuers’ obligations during the listing period and establishes procedures for delisting or withdrawal.

Trading sessions and price limits for bonds and sukuk will be separate from those for equities, the statement said, without providing details.

According to Boursa Kuwait, the listing of bonds and sukuk will allow Kuwaiti and foreign entities to raise funding at competitive rates compared with traditional bank borrowing and access a broader investor base.

Companies seeking to list must meet several conditions, such as obtaining a credit rating, issuing bonds or sukuk worth at least KD100,000 ($323,000) or the equivalent in foreign currency and protecting the interests of bond or sukuk holders.

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