KUWAIT CITY, June 22: Realty developer United Real Estate Company (UREC), successfully completed a KD 40 million local bond issuance, company Vice Chairman, Ali Ibrahim Maarafi said at a press conference Tuesday.
Kipco Asset Management Company (KAMCO) and NBK Capital acted as Joint Lead Managers in the bond issuance, he added. The press conference was held at KAMCO’s head office in Sharq.
With assets of KD 313.8 million, UREC is the third largest real estate company in Kuwait.
Further talking about the United Real Estate Company’s bond issuance, Maarafi said that it comes at a significant time. The Vice Chairman was referring to the much anticipated revitalization of the local debt capital markets, “which has been dormant for the past couple of years.
“The bond issuance is the first local currency dominated issuance by a Kuwaiti issuer since 2008.
The bonds have a 3-year tenure and were issued in two tranches. When asked to elaborate, Al Maarafie noted that the two tranches included a KD 28.5 million fixed rate tranche paying coupon of 6.75 percent per annum, and a KD 11.5 million floating rate tranche paying 3.75 percent over the CBK Discount Rate and capped at 7.75 percent per annum.

“Proceeds from UREC’s new bond issuance, which were rated BBB- by Capital Intelligence, will be used for refinancing existing debt and for general corporate purposes.”
In addition, Maarafi said that the successful issuance of the bond reflects the surging confidence of local financial institutions and bond investors in United Real Estate Company.
The Vice Chairman mentioned that this adds to UREC’s impressive track record, which was built over the last ten years. “The company has now evolved into a leading Kuwaiti real estate developer. We have earned a good reputation in the market for issuing and duly paying previous borrowings.”
Salah Al Fulaij, CEO of NBK Capital, as a Join Lead Manager of the bond issuance, said for his part that this issuance is an important one as it signals the end of a long period of inactivity in the local debt market.
KAMCO, which is the other Joint Lead Manager, was represented at the press conference by Sadoun Ali, KAMCO’s MD and CEO. He said that local institutions and investors have anticipated such an offering for a long time. “I hope that this issuance will open the door for other companies to start borrowing from the local market again.”
UREC is an integrated real estate company, which invests in, manages and develops real estate properties in Kuwait and within the MENA region. The company’s property portfolio includes a combination of retail, office, hospitality and residential properties in Kuwait, GCC Countries and North Africa.
Established in 1998 with the mission to significantly alter the local and regional investment landscape, KAMCO is a premier investment company based in Kuwait. A subsidiary of United Gulf Bank (UGB) — the investment banking subsidiary of Kuwait Projects (Holding) Company (KIPCO) — KAMCO was listed on the Kuwait Stock Exchange (KSE) in 2003.
After eleven years of conducting business in Kuwait’s dynamic investment industry, KAMCO has successfully established a robust reputation for solidity, characterized by its prudent, conservative investment philosophy which has consistently commanded the goodwill of a wide patron-base.
KAMCO’s Asset Management Division specializes in customized portfolio management, forward trading, access to IPOs, and local and international fund management. The Investment Advisory and Investment Research Division tracks the latest directions and trends across regional and local economies as well as equity markets and offers a range of customized services that focus on maximizing returns, mitigating risks, and maintaining capital appreciation for individual and institutional clients. The Company’s Financial Services and Investment Division offers a full range of advisory services on mergers and acquisitions, underwriting, private placements, debt issuance and restructuring, and private equity management.
In 2010, the Company will further aggressively build upon its core competencies to offer MENA-wide investment management consultancy and services, backed by its proven track-record in stringent risk mitigation, investment product innovation, and a cautious investment approach towards local, regional and international capital markets.
NBK Capital was established in July 2005 as a subsidiary of the National Bank of Kuwait (NBK), one of the region’s oldest and highest rated banks. NBK Capital focuses on four principal lines of business: Alternative Investments, Asset Management, Brokerage & Research and Investment Banking. With offices in Kuwait, Dubai, Turkey, and Cairo, NBK Capital’s team of more than 170 professionals offer superior products and services to clients and investors.