Thursday, Jun 13, 2013
(This story was originally published on Wednesday.)
BEIRUT (Zawya Dow Jones)--Kuwait's United Real Estate Co. (URC.KW) will pay a fixed interest rate of 5.75% on one tranche of its planned 60 million Kuwaiti dinars ($211.2 million) bond, an URC executive said.
A floating interest rate of 3.25% above the central bank of Kuwait's discount rate will be paid on the other tranche, Mohammed Al Saqqaf, chief executive of the property development firm, said in an emailed statement on Wednesday.
There will be quarterly coupon payments on this five-year bond which will mature in 2018, Mr. Saqqaf added.
Kuwait's Gulf Bank said in the statement that it has been appointed as joint lead manager for the bond issue. The other joint lead managers are the two local firms Kipco Asset Management Co. and Burgan Bank, according to an earlier URC statement.
The current statement said that the bond has been rated BBB- with a positive outlook by the credit rating agency Capital Intelligence.
URC, whose major shareholder is Kuwait Projects Co. (Holding), or Kipco, said in May that it had won the approval of the country's Capital Markets Authority for the bond issue.
The Kipco group is one of the largest diversified holdings in the Middle East and North Africa.
URC's shares closed 1.8% lower at KWD0.11 in overall negative market.
Write to Shikrallah Nakhoul at shikrallah@zawya.com
Copyright (c) 2013 Dow Jones & Co.
(END) Dow Jones Newswires
13-06-13 0342GMT
