Injazzat Real Estate Development Company has announced the successful closing of its $60 million sukuk offering.

The sukuk, which has an Ijara structure, has a tenor of five years and earns a profit rate of Libor +125 basis points.

NBK Capital acted as mandated lead manager and arranger for the offering while Bank of Kuwait and the Middle East acted as co-lead manager and Boubyan Bank as manager.  The National Bank of Kuwait managed funds.

Proceeds of the sukuk will be used to finance the acquisition of a real estate in Kuwait. Injazzat is rated BBB by Capital Intelligence.

“This is an important milestone for Injazzat as it represents the company’s inaugural capital markets issuance and we are very pleased that it has won the confidence of distinguished group of investors,” said Injazzat’s managing director Mohammad Farhan.

“We are keen on partnering with solid companies like Injazzat and helping them realise their growth potential and achieve their goals,” said NBK Capital chief executive officer George Nasra.