Ahlia plans $343mn convertible bond

Kuwait's Al-Ahlia Holding is seeking 87.9 million dinars ($343.4 million) by selling Islamic bonds that may be converted into shares in a real estate affiliate, sale's lead manager said on Monday.

The bond could be converted in two years into Ahlia's 269.5 million shares, or a 49 percent stake, in Al-Ahlia Real Estate Projects Co. (AREPCO) at 0.325 dinars, the Liquidity Management Centre, a Bahrain-based investment bank, said.

In the alternative Ahlia has the option of selling its stake in AREPCO to the public and paying off the bond, the Liquidity Management Centre, said in a statement.

The bond will pay a coupon of 8 percent a year.

Al-Ahlia said on July 11 it had received an offer from HSBC on behalf of client for a 51 percent stake in AREPCO.

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