Kuwait Financial Centre (Markaz) has completed the private placement of the first tranche of bonds with a total value of KWD35 million ($113.92 million) issued under KWD50 million Senior Unsecured Bond Program, composed of two equal tranches (fixed and floating) with maturity date 5 years from the issuance date (17 December 2025).
The bonds were oversubscribed affirming investors’ trust in Markaz, it said.
The fixed-rate tranche has a coupon of 5.25% per annum payable quarterly, while the floating-rate tranche offers a coupon of 2.00% above the Central Bank of Kuwait discount rate, capped at 6.25% per annum and payable quarterly. Ahli Capital Investment Company and Markaz were the joint lead managers. The subscription period for the issuance lasted from 3 November to 15 November 2025.
Capital Intelligence, an international credit-rating company, rated the bonds at (BBB) with a stable outlook. This rating reflects Markaz’s sound financial standing in terms of liquidity, solvency and the sustainability of its management fees and commission income. Other supporting factors include Markaz’s consistent track record of meeting its debt service obligations, its access to unsecured financing, and its diversified lender base.
Diraar Yusuf Alghanim, Chairman of Markaz, stated: “We are pleased to announce that Markaz’s latest bond issue was received positively by the capital market. The strong demand for our fourth issue reflects the continuing trust that investors place in Markaz, its solid creditworthiness, and the capital markets’ confidence in the quality of our bond issues. The Capital Intelligence rating also confirms Markaz’s status as a well-established franchise with a sound reputation in the region, particularly in Kuwait. Our experienced management team has succeeded in effectively guiding the company through this year’s challenges, while always ensuring that we fulfill our responsibilities to our stakeholders.”
Markaz CEO, Ali H Khalil, commented: “These bonds were competitively priced and attracted extensive participation from institutional investors; reinforcing their trust in our credit risk. He added that Markaz has always been an active participant in the debt capital markets as an issuer, lead manager, and investor, and will continue to work with regulators and the public and private sectors to create an efficient and liquid bond market in Kuwait. We always seek to maintain and reinforce these relationships, and entrusted Ahli Capital in view of their strong market positions, as well as our confidence in their distribution networks.” - TradeArabia News Service
