By Elizabeth Drachman
Kuwait’s largest private sector company receives massive loan
One of the largest companies in Kuwait, Kuwait Projects Company (KIPCO), closed its first syndicated term loan facility at almost double its original figure. The holding company, which is the most actively traded stock in Kuwait, has more than US$10 billion under management.
The loan was oversubscribed by US$100 million. Lenders involved in the loan, fixed at the London Interbank Offer Rate plus a margin of 1.25%, are from Europe, and Asia and the Far East, as well as the Middle East.
“Demand from regional and international markets was keen and exceeded our original figure of US$60 million,” said Abdulla Yacoub Bishara, KIPCO vice chairman. “We have almost doubled the syndicated amount to US$100 million due to this demand.”
The company will use the loan to deepen KIPCO’s institutional lending base, extend the maturity profile of its liabilities, enhance the currency profile of assets, and reduce costs, said officials.
The private sector company owns United Gulf Bank, Burgan Bank, Wataniya Telecom and Showtime.