By Tali Rackner
Minneapolis, Dec. 28 – Kuwait Projects Co. (Holding) (Kipco) priced KD $100 million ($331 million) seven-year notes at par on Thursday, according to a filing with the London Stock Exchange.
This the first ever seven-year corporate dinar bond issue in Kuwait, and was 1.45 times oversubscribed.
The bonds were issued in fixed- and floating-rate tranches. At close, the fixed-rate bond attracted 36% of the transaction allocation and the floating-rate bond 64%.
The fixed-rate bond pays investors a coupon of 5¼% annually, while the floating-rate bond pays investors a coupon of 2¼% annually over the declared Central Bank of Kuwait discount rate, with a cap of 1% over the fixed-rate coupon.
The bonds were issued at par and will pay coupons in semiannual arrears.
Gulf Bank, Kamco Investment Co. and NBK Capital were the joint lead managers.
The issuer is a Kuwait City-based public investment holding company for a diverse group of businesses.
| Issuer: | Kuwait Projects Co. (Holding) (Kipco)
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| Amount: | KD 100 million ($331 million)
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| Tenor: | Seven years
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| Description: | Fixed-, floating-rate notes
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| Managers: | Gulf Bank, Kamco Investment Co., NBK Capital
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| Coupon: | Fixed-rate: 5¼%; floating-rate: 2¼% annually over declared Central Bank of Kuwait discount rate, with a cap of 1% over the fixed-rate coupon
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| Price: | Par
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