KIPCO concludes its debut Sukuk issuance

KIPCO concludes its debut Sukuk issuance

“Issuance taps into the deep pool of Sharia-compliant financing” says company’s Group CFO Kuwait City: KIPCO – Kuwait Projects Company (Holding) – announced the successful completion of its first Sukuk issuance of KD 103.1 million (US$ 335.8 million). This issuance is the first ever KD denominated Sukuk transaction by a Kuwait incorporated corporate. The trust certificates in Sukuk format were issued by Kuwait Projects Company Sukuk Limited, incorporated in Cayman Islands as an exempted company with limited liability, with KIPCO as the obligor. This is the first issuance under KIPCO’s US$ 2 billion Trust Certificate Issuance Program. The certificates have a six-year tenor. Floating Rate Certificates accounted for 36% of the total issuance, at KD 37.05 million (US$ 120.7 million). The initial profit rate for these certificates was set as 7% per annum (i.e. 3% over the Central Bank of Kuwait Discount Rate; provided that the floating rate profit shall never exceed 7.5%). The Fixed Rate Certificates offer 6.5% profit per annum and their total issuance amounted to KD 66.05 million (US$ 215.1 million). The proceeds from the issuance will be used for general corporate purposes. The certificates are Sukuk of Murabaha and Wakala, denominated in Kuwaiti Dinars and approved