NIGH’s 6th bond issue fully subscribed

Markaz, Ahli Capital and Gulf Bank successfully manage placement of KD 30mn bonds

KUWAIT CITY, Feb 18: National Industries Group Holding K.P.S.C. “NIGH”, as the Issuer, and Kuwait Financial Centre “Markaz”, Ahli Capital Investment Company “Ahli Capital” - a subsidiary of Al Ahli Bank of Kuwait (ABK), and Gulf Bank, serving as the Joint Lead Managers, announced in a joint statement the success of completing the KD-issuance of the National Industries Group Holding Bonds with a nominal value of 30 million Kuwaiti Dinars for a five-year term, which was fully subscribed.

The issuance reflects the investors’ trust in the quality of the issue, the high creditworthiness of the National Industries Group, and the effectiveness of the joint distribution of all of Markaz, Ahli Capital and Gulf Bank – the Joint Lead

Managers.

The Bonds were issued in two tranches, one with a fixed interest rate of 5.50% annually payable on a quarterly basis, and the other with a floating interest rate of 2.75% above the discount rate set by the Central Bank of Kuwait, annually and payable on a quarterly basis.

It is worth noting that these Bonds, due in 2025, are issued in Kuwaiti Dinars and enjoy a credit rating of (BBB-) from Capital Intelligence.

Ahmed Hassan, CEO of the National Industries Group Holding, said: “We are pleased to issue the new Bonds, which represent the sixth Capital Market Issuance by NIGH throughout its history, reflecting the high trust of the capital markets in the quality of NIGH’s bond issuances. The extensive participation of investors in the most recent NIGH bond issue also confirms the attractive structure and pricing.”

The National Industries Group Holding is a multi-industry conglomerate that was incorporated in 1960 and has always been a major player in the industrialization and development of modern Kuwait. NIGH was behind a large number of industrial establishments in Kuwait, where it currently holds a notable portfolio of subsidiaries and associates, which include Kuwait Cement Company K.P.S.C., National

Industries Company for Building Materials K.P.S.C., Noor Financial Investment Company K.P.S.C. and Mabanee Company K.P.S.C. NIGH became listed on Boursa Kuwait (formerly Kuwait Stock Exchange) in 1984, and currently is a constituent of the Premier Market on Boursa Kuwait.

NIGH total assets reached KD 1.200 billion as at Sept 30, 2019 and its paidup capital was KD 142.784 million, whereas the company achieved net profits attributable to owners of the parent company of KD 35.806 million for the nine months ended Sept 30, 2019 and KD 32.271 million for the same period in 2018. More so, the Bond rating of NIGH enjoys an investment grade of “BBB-” from Capital Intelligence, which is reflective of the sound quality and diversity of NIGH’s portfolio of assets, good level of liquidity, excellent debt servicing record.

Hassan added: “We cherish our strong relationship with the lead managers and subscription agents Markaz, Ahli Capital and Gulf Bank, and we seek to maintain and reinforce this relationship through the continuous cooperation between us. We entrusted the Joint Lead Managers with this role in this issue, in view of their strong market position as well as our confidence in the potentials of their distribution network.

Meanwhile, Manaf A. Alhajeri, CEO of Kuwait Financial Centre “Markaz”, said: “Our participation in the Bonds transaction has been met with great attention by investors in view of the excellent reputation of NIGH, the distinctive conditions for issuing the Bonds, as well as the outstanding distribution potentials of Markaz and other lead managers. Markaz assisted a number of local companies from various sectors in issuing bonds and sukuk to obtain financing required to support its businesses. Markaz structured the first BOT-Backed bonds in Kuwait, the first sukuk for a Kuwaiti real estate company and the fist high-yield bonds. Our team members are qualified professionals that provide clients with innovative customized financial solutions that meet their requirements, in addition to Markaz wide network of clients.

Alhajeri added: “We have provided the opportunity to our corporate clients and high net worth individuals to subscribe in these Bonds. Thus, we believe that we achieved a significant milestone for Markaz by providing an extensive set of diversified investment opportunities to our main clients. We hope in light of these positive signs that corporate efforts in both the public sector and private sector will continue to create a strong and deeply established bonds market.”

Fawzy Althunayan, Chairman of Ahli Capital, said: “We are delighted to be a part of this latest NIGH Bond issue, and we appreciate the trust NIGH has placed in us. We believe in the development of the KD bond market as a secure method for long-term financing as an alternative to bank loans.

“The successful completion of this fully subscribed Bond issuance reflects its appeal to a broad range of investors, and it is a further endorsement of general investor confidence in the high quality of NIGH’s diversified portfolio, its business strategy, and its excellent credit record. It also underlines the strength and the continued overall long-term stability of Kuwait’s ongoing economic diversification program. It is especially important in helping the development of the bond market in Kuwait, and provides a long-term funding method for other entities instead of depending on borrowing from Banks.”

Finally, Ahmad Al-Duwaisan, General Manager of Corporate Banking at Gulf Bank, said: “We are proud to have been among the Joint Lead Managers responsible for spearheading the issuance of the National Industries Group Holding Bonds. This corporate Bond transaction is an important milestone in the diversification of our funding sources and is a testament to our excellent access to capital markets.”

He added: “At Gulf Bank, we are constantly striving to elevate the banking experience for our corporate clients, who often have unique banking and investment needs that require tailored services and solutions. With our wide network of corporate clients and long experience in providing the best investment opportunities, we are proud of the results we keep achieving in terms of capital collection. The very positive reception given to this Bond issue demonstrates our investors’ confidence in our joint business model and strategy, and reflects the support and collaboration of our investors and partners.”

The international credit rating company “Capital Intelligence” affirms the credit rating of the National Industries Group Bonds at the “BBB-” investment grade with a stable outlook. It stated in its report that NIG’s large asset base comprising of a significant portfolio of quoted equities, as well as its diversification across multiple sectors coupled with its sound operating performance at most subsidiary and associated companies, are factors for supporting the stabilizing of the rating. Furthermore, the rating reflects the strength of the Issuer, comfortable effective liquidity and good reputation of the company.