Kuwait: $100 million Lagoon City Sukuk issue

Al Ahlia Gulf Holding Company, the wholly owned subsidiary of Al Ahlia Investments Company, has approved $100 million Lagoon City Sukuk issue.

The company has mandated Kuwait Finance House, Liquidity Management Centre and Muthanna Investment Company to jointly arrange for the $100m Islamic Musharaka Sukuk issue in support of the Lagoon City residential and commercial real estates development, as part of the Kheiran Pearl City project.

The project sets a precedent in Kuwait for the private sector contribution towards the urban development outside the capital Kuwait City.

The project development will cover a total area of 731,000 square metres with an estimated total cost of $410m - consisting of 545,000 square metres of water-front plots, 106,000 square metres of back-bay plots and 80,000 square metres of commercial plots, the GDN reported.

Al-Ahlia Investment Company was established in 1974 by a group of young Kuwaiti investors. Their vision was to participate actively in the development of the industrial sector within Kuwait.

Since its establishment, Al-Ahlia has developed into one of the leading investment companies in Kuwait. It is listed on the Kuwait Stock Exchange with a paid-up capital of KD 60 million.