Kuwait’s Global Investment House has been mandated by the Emirate’s Public Warehousing Company (PWC) as the sole underwriter and lead manager to its bond issue in the equivalent amount of up to $100 million.
The issue is the first dual currency issue introduced to the market. It is issued in two currencies, the US dollar issue carrying a fixed rate coupon of four percent per annum and a Kuwaiti dinar issue that carries an interest rate of five percent per annum. The principal as a bullet payment will be repaid at maturity, and the coupon on the bond is paid semiannually.
The bond is issued in such way that 25 percent of the fully committed amount will be drawn every six months. Therefore, the fully committed amount will be fully paid in 18 months. This is the first time this structure has been issued in Kuwait.
The declining interest rates that overshadow the local and global market paves the way for corporations to resort to the bond market for debt financing to reduce it cost of funding for general corporate needs and other purposes.
Likewise, corporate bonds carrying competitive interest rates and investment grade ratings are also targeted by investors who want to enhance the returns on their portfolios and protect them from uncertain down turns in the equity market. Investing in bonds helps the investor diversify their assets and minimizes their exposure to specific asset classes.
In 1979, PWC was established as a shareholding company and was privatized in 1997 when National Real Estate Company acquired approximately a 26.8 percent interest in the company. Initially, the company provided property management services, specifically warehouse management.
Since its privatization, the company has gone from being a provider of warehousing facilities and management to being a provider of total logistics solutions including, property management, supply chain management, customs solutions, and modernized IT solutions. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
