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Tue 24 Apr 2007 09:45 AM

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Global completes US$155m bond issue

Bond will be used to restructure Global's debt and free up funds for investment.

Global Investment House (Global) has completed a KD45m (US$155.6m) bond issue, which will be used to restructure the company's debt and invest the proceeds in other activities.

The issue is comprised of two tranches with a five-year tenor and a BBB+ rating from Capital Intelligence rating agency. One tranche, valued at KD20m carries a fixed coupon rate of 7% per annum, while the other, valued at KD25m, carries a floating rate of 1% above six-month KIBOR (Kuwait Inter-bank Offered Rate). Both coupons are paid semi-annually.

Maha Al-Ghunaim, chairperson and managing director of Global, said: "The primary objective of the current issue is to use the bond proceeds in Global's various growth activities, since the company is in the stage of entering different investment opportunities in the region.

"Global supports this type of lending and corporate finance tool to finance its investment and reach its goals and fulfil its expansion strategy. This bond issuance will work as a strong pad for a successful and dynamic money market in the region."

This is the second bond issue for Global. The previous bond, worth KD200m and issued in 2004, matures in 2009.

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