ASAR - Al Ruwayeh & Partners, a leading corporate law firm in Kuwait, has advised the joint lead managers on the placement of a KD 60 million bond issue by Kuwait’s United Real Estate Company (URC),  a statement said.  

 

The five-year bond will mature in 2018 and will be issued in two tranches, namely fixed rate bonds of KD36.45 million and floating rate bonds of KD23.55 million. 

 

The fixed rate bonds bear a fixed interest at the rate of 5.75 percent per annum. The floating rate bonds bear an interest at the rate of 3.25 percent per annum over the discounted rate of the Central Bank of Kuwait, capped at 6.75%, in effect on the rate fixing dates.  

 

The bonds include a Kuwaiti Dinar denominated fixed income investment opportunity which will deliver regular income in the form of quarterly coupon payments with redemption at maturity of the five year term. The bonds have been rated BBB- with a positive outlook by Capital Intelligence, the statement said.  

 

Rob Little, partner at ASAR – Al Ruwayeh & Partners, said: “We are pleased to have advised the Joint lead managers in relation to URC’s latest bond issue. Such transactions are crucial for the development of the local debt capital markets. We strongly believe that a fully functioning and vibrant local bond market is a key element in the development of Kuwait’s private sector, in line with the plan of developing Kuwait into a key financial center in the region. The issuance of this bond comes at an opportune time as we witness a renewed growth of the local bonds market, more so for the real estate sector.”

 

John Cunha, partner at ASAR – Al Ruwayeh & Partners said: “ASAR has been consistently at the forefront in advising large organizations with their bond issuance. The firm previously advised the joint lead managers to Burgan Bank’s landmark KD100 million ($356 million) Lower Tier II Subordinated Bond Issue. The bond marked the first KD-denominated Lower Tier II subordinated bond, largest private sector KD issuance and longest tenor in Kuwaiti market to be issued by a Kuwaiti bank. Moreover, ASAR also previously advised Kuwait Projects Company (KIPCO) with successfully completing its four year KD 80 million bond issuance.”

 

With dedicated offices in Kuwait and Bahrain coupled with its associated offices and relationships, ASAR provides clients across an extensive range of industry sectors with comprehensive legal advice and support for their business activities in Kuwait, across the GCC, and beyond. –TradeArabia News Service