The United Real Estate Company announced the successful completion of the issuance of unsecured bonds worth 80 million dinars for a period of 5 years, with Kamco Invest and Gulf Bank acting as issuance managers, explaining that this issuance is the largest of bonds denominated in dinars in the real estate sector, which reflects the confidence of investors.
The company indicated that the bonds, which mature in 2028, were issued on the basis of two tranches, the first at a fixed annual interest rate of 7 percent, and the second at a variable annual interest rate of 3 percent above the discount rate announced by the Central Bank of Kuwait, provided that it does not exceed the limit. The maximum variable interest rate is 1 percent per annum over the fixed interest rate, reports Al-Rai daily.
The company stated that this issuance received wide interest from investors, which reflects the investors’ great confidence in the strength and durability of the company’s financial position and their belief in its strategy during the coming years, adding that the issuance strengthened the position of “United Real Estate” in the Kuwaiti market as a major player in the real estate development sector.
Commenting, Mazen Hawa, Vice Chairman and Group CEO of United Real Estate, said: “This issuance, in terms of its size, is a quantum leap for the company, as it comes at a time when (United Real Estate) is intensifying its business in Kuwait and the region. We are taking deliberate and steady steps that are consistent with the company’s strategy, vision and future growth to ensure the achievement of sustainable value for all shareholders.
He added, “We thank the Capital Markets Authority, our investors, our joint principal managers (Kamco Invest) and Gulf Bank for their efforts.”
