Kuwait Finance and Investment Company (KFIC) has changed the terms of its existing loans amounting to KD20.6 million ($68 million), said Saleh Yacoub Al-Homaizi, the company’s chairman.

Annual payments have also been reduced from KD8 million to KD4 million, with an extended repayment period until 2018.

This step was also supported by KFIC’s commitment of repaying KD20 million loans in the past two years, a statement said.

Al-Homaizi explained during the recent Ordinary and Extraordinary General Assembly of the company that KFIC managed during 2014 to exit some of its unlisted investments. KFIC also liquidated part of its listed and classified investments; that is held for trading purposes and is available for sale. This in return generated a profit of KD874,000 he said.

Al-Homaizi then added that for over two years KFIC was able to exit from its non- generating investments such as Arab Finance House, Gulf Finance Corporation, and CINET Company. The company also has other existing plans to exit from some direct investments in 2015 and 2016, he said.

Al-Homaizi pointed out that KFIC successfully entered into real estate investment activity by investing in new yielding assets in 2014 with an amount of KD4.8 million. Those investments are in medium and long term assets allocated in different geographic areas (Kuwait, GCC, and in the US).

It is forecasted that the positive impact of such investments on the company’s business would materialize in the next fiscal years starting from 2015, said Al-Homaizi.

KFIC achieved a net operating profits amounted to KD2.4 million in 2014 compared to a profit of KD3.2 million Kuwaiti Dinars in 2013.

The decrease is mainly attributed to the decline of equity prices at capital markets in 2014 compared to 2013, said Al-Homaizi.

KFIC realized a net profit of KD1.5 million in 2014, compared to KD3.9 million in 2013, marking decrease of KD2.4 million. – TradeArabia News Service