KIPCO – the Kuwait Projects Company (Holding) – has announced that it has successfully completed its KD 100 million (US$ 329 million) five-year bond issue. The issue was 1.35 times oversubscribed, receiving a record number of investors.

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% annually, while the floating rate bond pays investors a coupon of 2.25% 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 semi-annually in arrears.

The joint lead managers on the transaction were KAMCO Investment Company and Gulf Bank.

Commenting on the transaction, KIPCO’s Vice Chairman (Executive), Mr 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:

“We would like to thank the Kuwait Capital Markets Authority, our investors and joint lead managers – KAMCO Investment Company and Gulf Bank – for their assistance and support.”