Mubasher: Kuwait Projects Holding (KIPCO) has issued $500 million bonds that are listed on the London Stock Exchange (LSE), with a 4.229% fixed interest rate.
The bonds were issued under the company’s $3 billion Euro Medium Term Note Programme (EMTN) through its subsidiary, Kuwait Projects Co, according to a bourse statement on Wednesday.
The bonds carry a maturity period of seven years and were oversubscribed seven times after the total demand volume amounted to $3.6 billion, the largest for KIPCO in the foreign bond market.
In a press release on Wednesday, KIPCO noted that "The issue will also reduce the company's annual cost of funding by US$ 26 million once the July 2020 notes are repaid."
KIPCO pointed out that the transaction will extend the average life of its debts while enhancing its liquidity, ensuring the diversification of funding resources.
"The joint lead managers on the transaction were Bank ABC of Bahrain, First Abu Dhabi Bank, HSBC, JPMorgan and KAMCO Investment Company," the press release added.
