KIPCO completes KD 165mln six-year bond issue – ZAWYA
This is the largest KD-denominated bond issue to date
Kuwait City: KIPCO – Kuwait Projects Company (Holding) – has announced that it has successfully completed its KD 165 million (US$ 538 million) six-year senior unsecured bond issue. This is the largest KD-denominated bond issue to date, reflecting the confidence of investors in KIPCO’s underlying credit strength.
The bonds, maturing in December 2028, were available in fixed and floating rate tranches, with the floating tranche attracting 67% of the allocation. The fixed rate bond pays investors a coupon of 6.75% annually, while the floating rate pays investors a coupon rate of 3% annually over the declared Central Bank of Kuwait discount rate.
The joint lead managers of the transaction were Kamco Invest and Gulf Bank.
Commenting on the transaction, Mr Sunny Bhatia, KIPCO’s Group Chief Financial Officer, said:
“This issuance represents a landmark transaction, as it is the largest ever KD-denominated issuance to date. We are pleased to be active contributors to the Kuwaiti debt capital market and its development. The transaction reflects the continued success of our proactive liability management that aims at raising long-term financing, extending the tenor of our existing liabilities for a stronger capital structure, and aligning the liabilities profile with investment holding strategies.”
He added: “We would like to thank the Kuwait Capital Markets Authority, our investors and our joint lead managers – Kamco Invest and Gulf Bank – for their support.”
–Ends–
About KIPKO:
Kuwait Projects Company (Holding) – KIPCO – is a holding company that focuses on investments in the Middle East and North Africa. Its strategy of acquiring, building, scaling and selling companies in the MENA region has worked successfully for over 30 years.
KIPCO’s main business sectors are financial services, media, real estate and industry. KIPCO’s financial service interests include holdings in commercial banks, insurance companies, asset management and investment banking.
The conversion rate used is US$1 to KD 0.3067
Further information:
Eman Al Awadhi Group Senior Vice President
Corporate Communications & Investor Relations
Eman.Alawadhi@kipco.com
© Press Release 2022
Disclaimer: The contents of this press release was provided from an external third party provider. This website is not responsible for, and does not control, such external content. This content is provided on an “as is” and “as available” basis and has not been edited in any way. Neither this website nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this press release.
The press release is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Neither this website nor our affiliates shall be liable for any errors or inaccuracies in the content, or for any actions taken by you in reliance thereon. You expressly agree that your use of the information within this article is at your sole risk.
To the fullest extent permitted by applicable law, this website, its parent company, its subsidiaries, its affiliates and the respective shareholders, directors, officers, employees, agents, advertisers, content providers and licensors will not be liable (jointly or severally) to you for any direct, indirect, consequential, special, incidental, punitive or exemplary damages, including without limitation, lost profits, lost savings and lost revenues, whether in negligence, tort, contract or any other theory of liability, even if the parties have been advised of the possibility or could have foreseen any such damages.
