The Kuwait Projects Company, better known as KIPCO, has announced that it has successfully completed the issuance of a KD100 million ($331 million) bond.
This the first ever seven-year corporate dinar bond issue in Kuwait, and was 1.45 times oversubscribed, the company said in a statement
The bonds were issued in fixed and floating rate tranches, it said, adding that the joint lead managers on the transaction were Gulf Bank, KAMCO Investment Company and NBK Capital.
KIPCO said the bond issue is a continuation of its strategy of regularly raising money in the debt markets to diversify its investor base and provide financial flexibility to the company.
KIPCO added that it has been proactively extending its debt maturity profile, and has no debt repayments due till mid-2019.
KIPCO’s vice chairman (executive), Faisal Al Ayyar, said: “This latest issue, Kuwait’s first ever seven-year corporate dinar bond, is a testament to our continued commitment to contribute to the Kuwait Capital Market. In the past, Kuwaiti dinar bonds have typically been issued for shorter tenures. We are proud to
lead the way in offering longer-term investment opportunities.”
He added: “By issuing these dinar bonds, we have reduced our debt maturity concentration by converting our debt from short-term into longer-term. The funds raised by the bonds will be used to repay existing obligations, stagger our maturities and diversify our investor base.”
KIPCO Group has consolidated assets of $32 billion and has significant ownership interests in over 60 companies operating across 24 countries. The group’s main business sectors are financial services, media, real estate and manufacturing.
Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.