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Wed 16 Jun 2010 04:06 PM

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Kuwait's KFIC to recapitalise through rights issue

Recapitalised firm to have a capital base of $186.1m; terms of rights issue not known.

Kuwait's KFIC to recapitalise through rights issue
GLOBAL DOWNTURN: Kuwaiti investment houses were hard hit by the financial crisis. (Getty Images)

Kuwait Finance and Investment Co will recapitalise by raising KD20m ($68.66m) through a rights issue, the company said, after posting a loss in 2009 and restructuring $498m in debt.

KFIC will issue 200 million shares at a price of 100 fils per share. There are 1,000 fils to the dinar.

KFIC will eliminate its losses for 2009 by reducing its capital from 41.9 million dinars to 34.2 million dinars, and then rebuild its capital base to 54.2 million dinars ($186.1 million) through the rights issue.

Kuwaiti investment houses were hard hit by the financial crisis, which prompted the government of the world's fourth-largest oil exporter to approve a rescue package worth 1.5 billion dinars last year.

The company operates in investment banking, corporate finance and asset management.

Chairman Saleh Yacoub al-Homaizi said he had a "fresh outlook" for 2011 but did not elaborate.

"We are well on our way to building KFIC as a premier financial institution in a post-crisis world," he said in the statement.

On June 7, the company signed an agreement to restructure 145 million dinars ($497.8 million) in debt to local and international lenders. KFIC said the debt would be paid in four tranches with the last to be settled in December 2014. (Reuters)

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