Al-Ahlia issues $33 million bond managed by NBK
Al-Ahlia Investment Company (AIC) and the National Bank of Kuwait (NBK) recently signed agreements relating to the AIC 10 million Kuwaiti dinar ($33.1 million) bond issue. The bonds, which mature in five years, carry a coupon interest rate of 5.75 percent payable semi annually in arrears in October and April each year.
NBK acted as sole manager for this issue. In a press conference after the signing ceremony, Al-Gabandi said that this the first bond issue by AIC, which falls in line with its financial strategy of diversifying its sources of funding and that the proceeds will be used to refinance its activities and its general liabilities.
NBK was founded in 1952 as the first indigenous bank and the first joint stock company in Kuwait and the Gulf Region. It is the largest financial institution in Kuwait with effective market dominance in the commercial banking market. In 2001, NBK reported a record net profit of $342 million with a return on average equity of 25.4 percent and total assets of $14.6 billion. It has 42 local branches and its international network includes branches and subsidiaries in New York, London, Paris, Geneva, Singapore, Thailand, Vietnam, Bahrain and Lebanon. — (menareport.com)
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