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imageDUBAI: Kuwait Finance House (KFH), the country's biggest Islamic lender, is studying the issuance of Islamic bonds that would boost its capital reserves, its top official told Arabiya TV on Sunday.

The offering still requires necessary approvals, its chief executive Mazen al-Nahedh told the channel.

The firm could issue capital bonds that either enhance its core Tier 1 capital or its supplementary Tier 2 capital.

Besides sukuk plans for the parent company, KFH is also planning to issue Tier 2-enhancing sukuk this year for its Turkish subsidiary.

"We are about to issue Tier 2 sukuk, for the subsidiary bank in Turkey, and we expect the issue will happen this year to support its capital situation so it can grow," he added.

Copyright Reuters, 2016

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