Kuwait Projects Co SPC Limited KIPCO concludes its debut Sukuk issuance (0925F)
05 Julio 2023 - 8:46AM
UK Regulatory
TIDM61DH
RNS Number : 0925F
Kuwait Projects Co SPC Limited
05 July 2023
Immediate Release
First KD denominated Sukuk issuance by a Kuwaiti corporate
KIPCO concludes its debut Sukuk issuance
"Issuance taps into the deep pool of Sharia-compliant financing"
says company's Group CFO
Kuwait City, 5 July 2023: KIPCO - Kuwait Projects Company
(Holding) - announced the successful completion of its first Sukuk
issuance of KD 103.1 million (US$ 335.8 million). This issuance is
the first ever KD denominated Sukuk transaction by a Kuwait
incorporated corporate.
The trust certificates in Sukuk format were issued by Kuwait
Projects Company Sukuk Limited, incorporated in Cayman Islands as
an exempted company with limited liability, with KIPCO as the
obligor. This is the first issuance under KIPCO's US$ 2 billion
Trust Certificate Issuance Program.
The certificates have a six-year tenor. Floating Rate
Certificates accounted for 36% of the total issuance, at KD 37.05
million (US$ 120.7 million). The initial profit rate for these
certificates was set as 7% per annum (i.e. 3% over the Central Bank
of Kuwait Discount Rate; provided that the floating rate profit
shall never exceed 7.5%). The Fixed Rate Certificates offer 6.5%
profit per annum and their total issuance amounted to KD 66.05
million (US$ 215.1 million).
The proceeds from the issuance will be used for general
corporate purposes. The certificates are Sukuk of Murabaha and
Wakala, denominated in Kuwaiti Dinars and approved by the Sharia
Advisor. The certificates will be listed on the International
Securities Market of the London Stock Exchange.
KFH Capital, Kamco Invest and Warba Bank acted as joint lead
managers and placement agents of the transaction.
Commenting on the transaction, Mr Sunny Bhatia, KIPCO's Group
Chief Financial Officer said:
"This issuance represents a landmark transaction, being the
first ever KD denominated Sukuk transaction by a Kuwait
incorporated corporate. We are excited to be tapping into the deep
pool of Sharia-compliant capital and contributing to its
development in Kuwait. The transaction reflects the continued
success of our proactive liability management initiatives aimed at
raising long-term financing, extending the tenor of our existing
liabilities to strengthen KIPCO's capital structure and aligning
the liabilities profile with our investment holding
strategies."
He added:
"We would like to thank the Kuwait Capital Markets Authority,
our investors and our joint lead managers - KFH Capital, Kamco
Invest and Warba Bank - for their support and continued confidence
in KIPCO's capital markets initiatives."
- Ends -
Notes to Editors:
Kuwait Projects Company (Holding) - KIPCO - is a holding company
that focuses on investments in the Middle East and North Africa.
Its strategy of acquiring, building, scaling and selling companies
in the MENA region has worked successfully for over 30 years.
KIPCO's main business sectors are financial services, energy,
media, real estate , manufacturing and education. KIPCO's financial
service interests include holdings in commercial banks, insurance
companies, asset management and investment banking.
The conversion rate used is US$1 to KD 0.30705
Further information:
Eman Al Awadhi Group Senior Vice President
Corporate Communications & Investor Relations
T: +965 2294 3416
M:+965 6033 6399
Eman.Alawadhi@kipco.com
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July 05, 2023 09:46 ET (13:46 GMT)
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