Middle East Business: Gulf Insurance Group raises Kuwait’s first $198m perpetual bond – Gulf Digital News

Middle East Business: Gulf Insurance Group raises Kuwait’s first $198m perpetual bond – Gulf Digital News

Gulf Insurance Group, one of the leading insurance service providers in the Middle East and North Africa, announced today the successful issue of KD60 million Perpetual non-call 5 subordinated Tier 2 bonds, representing its debut issuance in the debt capital markets. 

 

The issue attracted a large number of local institutional and qualified investors and achieved an oversubscription in a short period, signifying GIG’s financial strength.

 

Kamco Invest, a regional non-banking financial powerhouse, acted as the Lead Manager and Structuring Advisor for GIG’s debut issuance. 

 

The bonds were issued in two tranches, a fixed coupon tranche with a coupon of 4.5% and floating coupon tranche with a coupon of 2.75% over the Central Bank of Kuwait’s discount rate. 

 

The bonds have been assigned an issue rating of “BBB+” by S&P Global Ratings and provide eligible Tier 2 capital to further enhance GIG’s financial strength. GIG continues to benefit from a rating of “A” from S&P Global Ratings, “A (Excellent)” from A.M Best and A3 from Moody’s.

 

This bond issuance represents an important milestone in Kuwait’s capital market being the first bond issuance by an insurance company and the first perpetual bond issuance denominated in Kuwaiti Dinar.

 

Earlier this year, the Group had announced the completion of the