Ahli United Bank Kuwait has obtained approval from Kuwait's central bank to issue capital-boosting sukuk worth up to $200 million, the bank said on Tuesday.
The bank, a unit of Bahrain's Ahli United Bank, did not give a time frame for the issue but said it could include foreign and domestic currency tranches.
The proceeds would be used to enhance the bank's capital base in line with Basel III global banking standards, it said. Basel III, which requires banks to hold more capital, is being phased in until 2019 in Kuwait.
Last year Kuwait's Capital Markets Authority released rules providing a legal basis for issuance of Islamic bonds, which is helping boost sales of sukuk. Kuwait's Gulf Bank and Boubyan Bank have both completed sukuk issues this year.