(MENAFN - Kuwait News Agency (KUNA)) KUWAIT, Nov 8 (KUNA) -- The Kuwait Projects Company (Holding) announced Thursday that it has successfully completed its KD 100 million (USD 329 million) five-year bond issue.
The issue was 1.35 times oversubscribed, receiving a record number of investors, the company said in a press release.
The bonds were available in fixed and floating rate tranches, with the floating tranche attracting the greater percentage of the allocation. The fixed rate bond pays investors a coupon of 5.5 percent annually, while the floating rate bond pays investors a coupon of 2.25 percent annually over the declared Central Bank of Kuwait discount rate, with a cap of 1 percent over the fixed-rate coupon, it said.
The bonds were issued at par and will pay coupons semi-annually in arrears, it added.
The joint lead managers on the transaction were KAMCO Investment Company and Gulf Bank, it noted.
Commenting on the transaction, KIPCO's Vice Chairman (Executive) Faisal Al Ayyar, said: "The record number of investors we have received for this bond reflects the need for expanded options to Kuwaiti dinar investors, beyond deposits, shares and real estate." "The issuance shows yet again our commitment to the development of the Kuwaiti capital market. We believe that the next step is to have an active secondary market, with the support of institutional investors. This will allow investors to buy and sell bonds after issue and increase their liquidity," he added.
The KIPCO Group is one of the biggest holding companies in the Middle East and North Africa, with consolidated assets of USD 32.7 billion as at 30 June 2018. The Group 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. Through its core companies, subsidiaries and affiliates, KIPCO also has interests in the education and medical sectors. (end) ak.msa.mt