Kamco Invest and Gulf Bank have announced the successful completion of the KWD165 million ($539 million) bond issuance for Kuwait Projects Company (Holding) Kipco, the largest KWD denominated corporate bond ever issued.

 

Jointly managed by Kamco Invest and Gulf Bank, the bond comprises of two tranches, a fixed rate and floating rate tranches, with a tenure of 6 years. The KWD55.15 million Fixed Rate tranche offers a coupon of 6.75%, whereas the KWD109.85 million Floating Rate tranche offers a coupon rate of 3.00% above the Central Bank of Kuwait’s discount rate with a cap of 7.75% per annum. 

 

The coupon on both tranches will be paid semi-annually, with first payment commencing end of June 2023. Kamco Invest acted as a financial advisor to Kipco in structuring the terms and coordinating with the regulators and various related parties.

 

Another milestone

Abdullah M AlSharekh, Managing Director of Markets and Investment Banking at Kamco Invest said: “This transaction marks yet another milestone that will pave the path for additional issuances to strengthen the local and regional debt capital markets. Kipco’s financial position, vision, and strong track record in utilising the debt capital markets have helped in attracting strong investor appetite.”

 

AlSharekh added: “Despite it being the largest KWD denominated corporate bond, the KWD165 million transaction was completed seamlessly and in a short period of time. We value the role our investment banking team is consistently undertaking in key transactions and putting forth their experience and credibility to deliver the best possible outcome.”

 

General Manager of Investments at Gulf Bank, Hani Al Awadhi, said: “We are pleased to participate as a Joint Lead Manager and Arranger along with Kamco Invest in the successful issuance of the largest KWD denominated corporate bond.”

 

Great attention

He added: “Participation in this transaction has been met with great attention by investors in view of the excellent reputation of Kipco and the professional expertise of Gulf Bank and Kamco Invest in providing a variety of investment opportunities to the clients.”  

 

Al Awadhi also said: “As part of Gulf Bank's continuous efforts to enhance its pivotal role in activating the local capital market and enhance customer offerings, the bank is in the final stages of establishing an investment subsidiary and has received preliminary approvals from regulatory bodies for the same. We look forward to managing more capital market transactions through our specialized team, who have spared no efforts in delivering the best possible outcome for all our valued clients.”

 

The bond issuance is the first capital market transaction for Kipco following the completion of its merger with QPIC end of November 2022. Today, Kipco is one of the largest holding companies in the Mena region with a balanced income stream and a diversified portfolio of assets that includes petrochemical and oil services, banking, foodstuff, insurance, amongst others.-- TradeArabia News Service