URC picks Gulf Bank for 5-year bond
Kuwait, June 12, 2013
United Real Estate Company (URC), a leading property development firm in the Middle East, has named Kuwait-based Gulf Bank as the joint lead manager for its five-year KD60 million ($210.5 million) bond issue.
The bond has been rated BBB- with a positive outlook by Capital Intelligence, said top officials at an event held to celebrate the appointment.
URC’s chief executive officer Mohammed Ahmed Al-Saqqaf said the five-year bond, which is due to mature in 2018, will be issued in two tranches, subject to investor demand.
"One of the tranches will pay a fixed interest rate of 5.75 per cent while the other will pay a floating interest rate of 3.25 per cent above the CBK discount rate. Subscribing customers will enjoy a Kuwaiti Dinar denominated fixed income investment opportunity which will deliver regular income in the form of quarterly coupon payments with redemption at maturity of the five year term," he explained.
He pointed out that URC was the regions’ leading real estate development company with total assets of KD556.6 as of December 31, 2012.
The company's majority shareholder is Kuwait Projects Holding Company (KIPCO), one of the largest and most diversified holding companies in the region, he stated.
"We are very pleased to be partnering with Gulf Bank and look forward to a long standing, mutually beneficial relationship together," he added.
Gulf Bank CEO Michel Accad said: "The support we have received from the local investment community is a clear indication of the strength of the issuer and the strong local demand from the investment community. The opportunity to subscribe to the bond will be providing our customers with a steady income and an enhanced yield for their investment portfolios compared to fixed deposits."
"Our role in this bond marks a significant milestone for Gulf Bank in both providing our customers with a wide range of diversified investment opportunities and utilising our own skills as a bond arranger and structurer," he added.-TradeArabia News Service