Burgan Bank in $356m bond issue
Kuwait, December 29, 2012
Kamco, a subsidiary of United Gulf Bank (UGB) and NBK Capital have announced the successful completion of a KD100 million ($356 million) lower tier II (LT2) subordinated bond issue by Kuwait-based Burgan Bank.
The duo acted as joint lead managers in the landmark transaction. This is the third time that both Kamco and NBK Capital have worked together in the local debt capital market, having previously cooperated in 2010 on the issuance of bonds by United Real Estate Company of KD40 million, and early in 2012 on the issuance of KD80 million bond by Kuwait Projects Company (Kipco).
This landmark transaction solidifies Kamco and NBK Capital’s longstanding commitment to developing the local debt capital market in Kuwait, said a senior official.
The Burgan Bank Issuance is the largest bond ever raised by a private sector issuer and has the longest tenor of 10 years. The bonds were issued at par and will pay coupons semiannually in arrears, also the bond is rated BBB+ by Capital Intelligence.
The ten-year subordinated LT2 bond was issued in fixed and floating rate tranches. This tenor is the longest in Kuwait’s history.
Salah Y. Al-Fulaij, the CEO of NBK Capital said, "The issuance is an important one as it signals a milestone in the development of the local debt capital markets. Investors now have long term local currency securities to consider as part of their investment universe."
"Furthermore, we are pleased to support Burgan in its expansion initiatives. The success of this transaction could not have happened without the coordinated and efficient effort of the Central Bank of Kuwait and Capital Markets Authority and the continued support of our investor base," he added.
Commenting on the deal, Faisal M. Sarkhou, Kamco’s acting CEO said, “We are proud to have played a leading role in such a momentous financial milestone, and we expect that this issuance will increase overall confidence in the Kuwaiti economy and investment banking sector."
"We at Kamco have a firm interest in the development and support of the local bond market which in turn will be a key element in the development of the Kuwaiti economy and the private sector," he added.-TradeArabia News Service
Kamco is a premier investment company based in Kuwait. A subsidiary of United Gulf Bank (UGB) – the investment banking subsidiary of Kuwait Projects (Holding) Company (Kipco) – Kamco was listed on the Kuwait Stock Exchange (KSE) in 2003.-TradeArabia News Service