KIPCO completes KD80m bond issue   'Largest ever corporate issue in Kuwait' "Local bond market key element in development of Kuwait's private sector" says company Vice Chairman Kuwait City, January 16th, 2012: KIPCO - the Kuwait Projects Company - has announced the completion of a KD 80 million (US$ 290 million) bond issue, the largest ever by a corporate in Kuwait. The four-year bonds were issued in fixed and floating rate tranches. At close, the fixed rate bond attracted 61% of the transaction allocation and the floating rate bond 39%. The fixed rate bond pays investors a coupon of 4.75% annually. The floating rate bond pays investors a coupon of 2% annually over the declared Central Bank of Kuwait discount rate, with a cap of 1% over the fixed-rate coupon. The bonds were issued at par and will pay coupons quarterly in arrears. The joint lead managers on the transaction were KAMCO and NBK Capital. The issue continues KIPCO's strategy of regularly raising money in the debt markets to diversify its investor base and provide financial flexibility to the company. The company's last bond issue was a US$ 500 million 10-year bond completed in July 2010. The KD bond is rated A+ by Capital Standards. KIPCO is also rated investment grade by both Standard & Poors and Moody's. The company has been proactive in extending its debt maturity profile and had KD 117 million (US$ 420 million) in cash reserves as of 31st December, 2011. KIPCO also has no debt repayments due for the next three years. Commenting on the transaction, KIPCO's Vice Chairman, Mr Faisal Al Ayyar, said: "As one of the region's premier holding companies with assets under management of 20 billion dollars and serving more than 1.5 million customers, we believe we are a role model for the region's private sector corporates and take this role into account when looking at our strategic funding options." "By issuing these dinar bonds - the largest ever corporate issue in Kuwait - we are meeting our leadership responsibilities by answering the needs of our local financial market. Since the onset of global economic crisis, Kuwait's bond market has been starved of new issues, so it is crucial that companies like KIPCO help to stimulate growth. We also believe that a fully functioning and vibrant local bond market is a key element in the development of Kuwait's private sector - an objective the Amir of Kuwait set as part of his vision for the country." "These dinar bonds will be repaid in January 2016, which leaves us with no debt repayments to make for the next three years. The funds raised by the bonds will be used to make selective prepayments of our existing obligations, reduce our average cost of funds, stagger our maturities and diversify our investor base." "We would like to thank the Kuwait Capital Markets Authority, our investors and our joint lead managers - KAMCO and NBK Capital - for their assistance and support." - Ends - KIPCO Vice Chairman Mr Faisal Al Ayyar (centre) with CEO of NBK Capital Mr Salah Al Fulaij (right) and the CEO of KAMCO Mr Sadoun Ali (left) Notes to Editors: About the bond issue: The prospectus for the bond issue is available for viewing at http://www.kipco.com/InvestorCentre.asp?q_pageid=158 The KIPCO Group is one of the biggest diversified holding companies in the Middle East and North Africa, with consolidated assets of US$ 19.9 billion as at September 30, 2011. The Group has significant ownership interests in a portfolio of over 70 companies operating across 26 countries. Its main sector focus is financial services, insurance and media. Through its core companies, subsidiaries and affiliates, KIPCO has interests in the real estate, industrial, education and management advisory sectors. Further information: Robert Hipkins Group Communications Director O: +965 2245 4286 M: +965 6635 6969 rhipkins@kipco.com Eman Al Awadhi Assistant Manager - PR & Marketing O: +965 1805 885 ext. 1615 M: +965 6033 6399 eman.alawadhi@kipco.com