Ahli Capital Investment Company completes Issue of NIG’s Bonds
Ahli Capital Investment Company (ACIC), a fully owned subsidiary of Al Ahli Bank of Kuwait (ABK), hereby announces the successful completion of the closing of bonds issuance of National Industries Group (NIG), in collaboration with ABK.
This Bond marks the first KD denominated Senior Asset-Backed Bond to be issued in Kuwait. The KD 25 million Senior Bonds are backed by assets with coverage up to 120% and not less than 112%. ACIC was able to complete the closing of this bond issuance on 20/12/2016 prior to the planned closing date on 29/12/2016. ACIC acts as the Bond’s Lead Manager and Subscription Agent while ABK is the Paying Agent. The five-year Senior Asset-Backed Bond, callable after three years, was issued with a floating rate of 2.25% over the Central Bank of Kuwait (CBK) discount rate (equivalent to 4.75%p.a. at the current rate) andis backed by an investment portfolio of Boursa Kuwait listed securities managed by ACIC.
Capital Intelligence, the international rating agency, has rated the bond as ‘BBB’, supported by the good operating performance of NIG as well as based on the segregated portfolio of equity investments supporting the bond; held by ACIC as being an independent investment custodian. Commenting on this issue, Muhsen M AlHarbi, Chief Executive Officer of ACIC, said:
“ACIC is proud to have played a key role in leading this unique bond issue for NIG and for providing our investors with an opportunity to invest in an excellent KD denominated investment grade product. The success of this transaction could not have happened without the support and cooperation of the Capital Markets Authority. On behalf of ACIC, I would like to extend my gratitude to our investors, both institutions and individuals, for their support in achieving full subscription prior to its planned closing date on 29/12/2016.”