KIPCO – Kuwait Projects Company (Holding) – has announced that it has successfully completed its KD 165 million (US$ 538 million) six-year senior unsecured bond issue. This is the largest KD-denominated bond issue to date, reflecting the confidence of investors in KIPCO’s underlying credit strength.

The bonds, maturing in December 2028, were available in fixed and floating rate tranches, with the floating tranche attracting 67% of the allocation. The fixed rate bond pays investors a coupon of 6.75% annually, while the floating rate pays investors a coupon rate of 3% annually over the declared Central Bank of Kuwait discount rate.

The joint lead managers of the transaction were Kamco Invest and Gulf Bank.

Commenting on the transaction, Mr Sunny Bhatia, KIPCO’s Group Chief Financial Officer, said:

“This issuance represents a landmark transaction, as it is the largest ever KD-denominated issuance to date. We are pleased to be active contributors to the Kuwaiti debt capital market and its development. The transaction reflects the continued success of our proactive liability management that aims at raising long-term financing, extending the tenor of our existing liabilities for a stronger capital structure, and aligning the liabilities profile with investment holding strategies.”

He added:

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