ACIC ‘Lead Man­ager’ for NIG KD25 mil­lion Bond Is­suance

Kuwait Times - - BUSINESS -

Ahli Cap­i­tal In­vest­ment Co KSCC (ACIC) has an­nounced it is to be lead man­ager and sub­scrip­tion agent for Na­tional In­dus­tries Group’s (NIG) prospec­tive KD25 mil­lion senior debt and as­set backed bond, which was an­nounced on 13 Novem­ber 2016, fol­low­ing reg­u­la­tory clear­ance ear­lier this year. ACIC, a fully owned sub­sidiary com­pany of Al Ahli Bank of Kuwait KSCP (ABK), will act as the Lead Man­ager and Sub­scrip­tion Agent with ABK as the Pay­ing Agent. Al Ruwaiyeh & Part­ners (ASAR) is the le­gal ad­vi­sor to the lead man­ager and sub­scrip­tion agent with Al Hos­sam Le­gal (Al-Turqi & Part­ners) act­ing as le­gal ad­vi­sor to the is­suer.

The bond will have a float­ing in­ter­est rate of 2.25% per an­num over Cen­tral Bank of Kuwait (CBK) Dis­count Rate and will be backed by a port­fo­lio of Kuwait Stock Ex­change (KSE) listed se­cu­ri­ties man­aged by ACIC with an ini­tial LTV of 83% and trig­ger LTV 89%. The bond will reach ma­tu­rity after five years with an op­tion to call the bond by the end of the third year. Muh­sen Al Harbi, CEO of ACIC said. “ACIC is very proud to play a key role in struc­tur­ing and lead­ing this unique trans­ac­tion for NIG, as well as pro­vid­ing our clients and in­vestors in gen­eral with an op­por­tu­nity to in­vest in an ex­cel­lent KD de­nom­i­nated in­vest­ment grade prod­uct.

Our goal is to of­fer clients the very best world-class ad­vi­sory ser­vices to as­sist them in de­vel­op­ing and achiev­ing their busi­ness ob­jec­tives and we ap­pre­ci­ate NIG’s trust in our part­ner­ship ap­proach.” Cap­i­tal In­tel­li­gence, the in­ter­na­tional rat­ing agency, has rated the is­sue as ‘BBB’, sup­ported by the good op­er­at­ing per­for­mance of NIG as well the seg­re­gated se­cu­ri­ties port­fo­lio of liq­uid eq­uity in­vest­ments held by ACIC as an independent cus­to­dian. NIG has said it plans to use the net pro­ceeds from the of­fer­ing for gen­eral cor­po­rate pur­poses.

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