Markaz successfully closes 5-year KD 35 million bond issue

Demand exceeded offered bonds, emphasizing investors' trust in Markaz

  
Markaz successfully closes 5-year KD 35 million bond issue

Kuwait Financial Centre K.P.S.C.Markaz” announced the successful close of its KD 35 million 5-year bond issue through private placement. The bonds, which were issued on 20 December 2020 and were oversubscribed affirming investors’ trust in Markaz, are equally allotted between fixed rate and floating rate tranches. The fixed-rate tranche has a coupon of 4.75% per annum payable quarterly, while the floating-rate tranche offers a coupon of 3.00% above the Central Bank of Kuwait discount rate, capped at 5.50% per annum and payable quarterly. Gulf Bank, Ahli Capital Investment Company and Markaz were the joint lead managers and subscription agents. The subscription period for the issuance lasted from 24 November to 10 December, 2020.

 “Capital Intelligence”, an international credit-rating company, rated the bonds at (BBB) with a stable outlook. This rating reflects Markaz’s sound financial standing in terms of liquidity, solvency and the sustainability of its management fees and commission income. Other supporting factors include Markaz’s consistent track record of meeting its debt service obligations, its access to unsecured financing, and its diversified lender base.

Mr. Diraar Yusuf Alghanim, Chairman of Markaz, stated: “We are pleased to announce that Markaz’s latest bond issue was received positively by the capital market. The strong demand for our fourth issue reflects the continuing trust that investors place in Markaz, its solid creditworthiness, and the capital markets’ confidence in the quality of our bond issues. The Capital Intelligence rating also confirms Markaz’s status as a well-established franchise with a sound reputation in the region, particularly in Kuwait. Our experienced management team has succeeded in effectively guiding the company through this year’s challenges, while always ensuring that we fulfill our responsibilities to our stakeholders.”

Markaz CEO, Mr. Ali H. Khalil commented: “These bonds were competitively priced and attracted extensive participation from institutional investors; reinforcing their trust in our credit risk. He added that Markaz has always been an active participant in the debt capital markets as an issuer, lead manager, and investor, and will continue to work with regulators and the public and private sectors to create an efficient and liquid bond market in Kuwait. We always seek to maintain and reinforce these relationships, and entrusted Gulf Bank and Ahli Capital in view of their strong market positions, as well as our confidence in the their distribution networks.”

Send us your press releases to pressrelease.zawya@refinitiv.com

© Press Release 2020

Disclaimer: The contents of this press release was provided from an external third party provider. This website is not responsible for, and does not control, such external content. This content is provided on an “as is” and “as available” basis and has not been edited in any way. Neither this website nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this press release.

The press release is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Neither this website nor our affiliates shall be liable for any errors or inaccuracies in the content, or for any actions taken by you in reliance thereon. You expressly agree that your use of the information within this article is at your sole risk.

To the fullest extent permitted by applicable law, this website, its parent company, its subsidiaries, its affiliates and the respective shareholders, directors, officers, employees, agents, advertisers, content providers and licensors will not be liable (jointly or severally) to you for any direct, indirect, consequential, special, incidental, punitive or exemplary damages, including without limitation, lost profits, lost savings and lost revenues, whether in negligence, tort, contract or any other theory of liability, even if the parties have been advised of the possibility or could have foreseen any such damages.

More From Press Releases