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Kuwait City: United Real Estate Company (URC) issued a KD 60 million bond with a five-year tenure, with KAMCO Investment Company (KAMCO) acting as the Sole Manager and Arranger for the debt securities issuance.
The bond is comprised of two tranches: KD 32.15 million fixed interest bonds with an interest rate of 5.75%, paid quarterly in installments; and KD 27.85 million floating interest bonds with an interest rate set at the discount rate declared by the Central Bank of Kuwait plus 2.50% paid quarterly in installments.
In their joint press release, URC and KAMCO said that the bond received a ‘BBB’ rating, a higher rating than URC’s previous bond rating of ‘BBB-’ in 2013, both rated by Capital Intelligence Ratings (CI). The issuance is also the first Kuwaiti Dinar denominated bond in 2018.
The issued bonds were in strong demand from institutions and high net worth individuals. CI’s higher credit rating and the demand for quality issues by the investors is reflected in URC’s bond issuance, one of the largest issuances in the local and regional market.
Mr. Tariq AbdulSalam, URC Chairman, said, “The high demand on this bond issuance reflects investors’ confidence in URC, particularly in the company’s management team and overall strategy.”
He added that the company will use the bond issuance proceeds to close existing bonds and finance other company activities.
On his part, Mr. Faisal Mansour Sarkhou, CEO of KAMCO, expressed his pride in the effort and cooperation portrayed by all involved parties who played a pivotal role in successfully completing this bond issuance. He added that this transaction marks yet another milestone that will pave the path for additional real estate company issuances that will strengthen the local and regional debt markets.
Mr. Sarkhou said, “At KAMCO, we believe in the importance of our role in enhancing and supporting the private sector; and promoting the growth of Kuwait’s economy. As acting managers and arrangers, we are pleased with the successful results of URC’s issuance. We look forward to managing more bond and sukuk issuances through our Investment Banking team, who have spared no efforts in delivering the best possible outcome for all our valued clients.”
URC and KAMCO expressed their gratitude to the Capital Markets Authority for its support, commitment and cooperation towards enhancing the financial services industry. The two companies also praised the crucial role of the trusted investors, who were the driving force behind the successful outcome of this transaction.
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About URC
United Real Estate Company (URC) is one of the Middle East and North Africa’s leading real estate developers, with consolidated assets of KD 602 million (US$ 2 Billion) as of 31 December 2017. URC was founded in 1973 and listed on the Kuwait Stock Exchange in 1984.
URC primarily operates through a number of operational subsidiaries and investment arms across the MENA region. The company's core business is real estate development and operations, and enjoys a diversified portfolio of assets that include retail complexes, hotels, residential properties and high-rise office buildings.
URC’s operations extend to construction and contracting, facility management, and project management through its several subsidiaries. The company's portfolio of assets and businesses are geographically spread across a number of countries through several assets such as Marina World, Marina Hotel, and KIPCO Tower in Kuwait, Salalah Gardens Mall & Residences in Oman, Abdali Mall in Jordan, Raouche View 1090 in Lebanon, Avaris and Aswar Residences in Egypt, and Assoufid in Morocco.
URC’s majority shareholder is KIPCO Group, one of the biggest holding companies in the Middle East and North Africa, with consolidated assets of US$ 34.5 billion as at 31 December 2017. The Group has significant ownership interests in over 60 companies operating across 24 countries. The group’s main business sectors are financial services, media, real estate and manufacturing. Through its core companies, subsidiaries and affiliates, KIPCO also has interests in the education and medical sectors.
About KAMCO
KAMCO Investment Company K.S.C (Public) is a premier investment company based in Kuwait. The Company is one of the leading investment firms in the Gulf region in terms of assets under management (AUM), and is regulated by the Capital Markets Authority.
Established in 1998 and listed on the Boursa Kuwait in 2003, KAMCO is a subsidiary of United Gulf Bank (UGB).
The Company has established itself as a regional leader in providing innovative products and services to its clients, enabling it to increase AUM to over USD 11.2 billion (as of 31 December 2017) and achieve a strong track record of 96 successful investment banking transactions worth around USD 15.2 billion (as of 31 December 2017).
With almost two decades worth of experience in conducting business with in investment industry, KAMCO has successfully established a robust reputation in the region, driven by its performance, prudent and conservative investment philosophy, solid business model and fundamental belief in implementing the highest standards of transparency, which has consistently commanded the goodwill of a wide and growing patron-base.
Through its strategy, the Company aims to continue building upon its core competencies to provide the MENA region with innovative investment management consultancy and services, in addition to financial services that meet the needs of clients through value-added investment products and a cautious investment approach that is supported by an experienced team and strong track record.
KAMCO Investment Company (DIFC) Limited (KAMCO DIFC) is a whole owned subsidiary of KAMCO Investment Company, incorporated in the Dubai International Financial Centre and regulated by the Dubai Financial Services Authority.
Further Information
Nora Zehery
Assistant Vice President – Corporate Communications
United Real Estate Company
T +965 2295 3500 Ext. 3672
© Press Release 2018
