Investment <strong>Bank</strong>ing‘Best Investment <strong>Bank</strong> in the Middle East’…NBK remains the region’s leading investment bank, providing a spectrum <strong>of</strong>services to governments, corporations <strong>and</strong> institutions, including debt <strong>and</strong>capital raising, advising on corporate strategy <strong>and</strong> structure, valuations,mergers <strong>and</strong> acquisition, <strong>and</strong> other advisory services. The <strong>Bank</strong>’s strongposition in the local market has been enhanced by its growing regionalpresence. Emerging Markets recognised NBK as the ‘Best Investment <strong>Bank</strong> in<strong>Kuwait</strong> <strong>and</strong> the Middle East’ in <strong>2004</strong>, after being named ‘Best Mergers <strong>and</strong>Acquisitions House in <strong>Kuwait</strong>’ in 2003 by Euromoney.NBK’s investment banking activities are being exp<strong>and</strong>ed to meet growingdem<strong>and</strong> <strong>and</strong> to provide superior expertise across the Middle East. Our team<strong>of</strong> highly qualified pr<strong>of</strong>essionals continuously strives to secure for ourcustomers optimal <strong>and</strong> cost-effective solutions.In <strong>2004</strong>, we exp<strong>and</strong>ed <strong>of</strong>ferings in two strategicareas: direct real estate funds <strong>and</strong> ShariacompliantIslamic funds. We successfully launcheda second US property fund <strong>and</strong> created theIslamic Asian Real Estate Fund, a unique Shariacompliantreal estate fund that invests in Class Aproperties across Asia. We also launched the third<strong>of</strong> a series <strong>of</strong> Islamic leasing funds.NBK GAM’s unique Fundselect programme,launched in 2003, continued to attractinvestments from a diverse group <strong>of</strong> investors.This ‘open architecture platform’ <strong>of</strong>fers investorsunique opportunities to blend pr<strong>of</strong>essional assetallocation techniques with the employment <strong>of</strong>some <strong>of</strong> the world’s most successful specialistfunds, within a single investment portfoliotailored to reflect each client’s risk tolerance.NBK International Brokerage was significantlystrengthened by recruiting new skills in clientservicing <strong>and</strong> security trading, for the US marketsthat complement our already established onlinetrading platform.NBK’s global wealth management business hasgrown steadily, with assets under managementreaching US$ 6.2 billion. Our outlook for 2005 <strong>and</strong>beyond is very positive as we plan to introducefurther new <strong>and</strong> bold initiatives.In <strong>2004</strong>, the <strong>Bank</strong> advised state-owned Petrochemical Industries Companyon the formation <strong>of</strong> Al-Qurain Petrochemical Industries Company, <strong>and</strong>successfully lead-managed the initial public <strong>of</strong>fering (IPO) <strong>of</strong> 90% <strong>of</strong> thecompany’s capital. The IPO, at US$ 325 million, was the largest in the history<strong>of</strong> <strong>Kuwait</strong> <strong>and</strong> another step in the government’s effort to privatise parts <strong>of</strong>the oil <strong>and</strong> gas sector.Investment <strong>Bank</strong>ing, in coordination with the Corporate <strong>Bank</strong>ing Group, alsosuccessfully led a public <strong>and</strong> private <strong>of</strong>fering for Al-Jazeera Airlines, thecountry’s first private carrier. The highly successful IPO was over-subscribedmore than 12 times. The company was the first to be established since the<strong>Kuwait</strong>i government’s decision to open the airline industry to the privatesector. This deal further confirmed our strategic role in supportingliberalisation efforts in key sectors.The <strong>Bank</strong> successfully managed <strong>and</strong> closed a bond issue for Commercial<strong>Bank</strong> <strong>of</strong> <strong>Kuwait</strong>. Valued at US$ 200 million, this deal was the largest privatebond issue yet in <strong>Kuwait</strong>. Investment <strong>Bank</strong>ing also received a number <strong>of</strong>m<strong>and</strong>ates for bond issues that will be ready for launching early next year. Anumber <strong>of</strong> restructuring <strong>and</strong> valuation deals are also in the pipeline.The <strong>Bank</strong>’s dominant market position in <strong>Kuwait</strong>, coupled with our expertise<strong>and</strong> reputation as a proven market leader, made NBK the first choice for ourclients. Our strategy for the future is to continue to exp<strong>and</strong> investmentbanking activities across the region, providing high-quality strategic advice<strong>and</strong> creative financing solutions.Review <strong>of</strong> Activities <strong>2004</strong>16
THE EXPERTISE AND PLACEMENT POWER THAT EARNED NBK THE TITLE OF ‘BEST INVESTMENT BANK INTHE MIDDLE EAST’ IN <strong>2004</strong> WERE EVIDENT IN THE SUCCESSFUL PUBLIC AND PRIVATE OFFERING OFKUWAIT’S FIRST PRIVATE AIR CARRIER AND IN OUR LEAD ROLE IN THE LOCAL MARKET’S LARGEST IPO.17
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