Kuwait: Closing of US$ 200 million Lagoon City Islamic Musharaka Sukuk
Liquidity Management Centre BSC (c), the Mandated Lead Arranger for the largest Sukuk Issue in Kuwait for Al Ahlia Gulf Holding Company, has announced the successful closing of the US$ 200 million Lagoon City Islamic Musharaka Sukuk.
The Issue has attracted the major players in the industry namely Emirates Islamic Bank, Bahrain Islamic Bank and Liquidity Management Centre as Senior Lead Managers; Rayan Bank, Islamic Development Bank, Capital Management House, Sharjah Islamic Bank, Kuwait Finance House Malaysia, The Arab Investment Company and Emirates Bank International as Lead Managers, Khaleeji Commercial and Kuwait Real Estate Bank as Co-Lead Managers; Commercial Bank of Qatar and Bank Muscat International acted as Managers along with National Bonds, Arab Islamic Bank and Al-Amin Bank as participants.
On this occasion, Mr. Ahmed Abbas, Liquidity Management Center’s Chief Executive Officer, said “The Islamic Musharaka Sukuk which is an international sukuk, has achieved an over-subscription of US$ 75 million and the bank has elected to increase the facility to US$ 200 million making it the largest corporate Sukuk Issue in Kuwait to-date.” He also added: “this is a reflection of the significant confidence of the investors in the Sukuk issue, our strategy and unique structured products”. The Lagoon City Musharaka Sukuk is a reducing 5 year Musharaka callable at end of year 2 by the Obligor (Al Ahlia Gulf Holding Company) and has been rated “BBB+” by Capital Intelligence.
This marks LMC’s third Sukuk issue in Kuwait and many other issues regionally which heralds an increased focus on establishing its presence in the GCC and the Kuwait market where the bank is actively seeking infrastructure project opportunities.
On this occasion, Mr. Abdul Aziz Al Nabhan – Chairman of Al Ahlia Gulf Holding Company expressed his sincere thanks and appreciation to the Liquidity Management Centre and the financial institutions and banks that have participated in this Musharaka Sukuk and commended; “We are very pleased with such overwhelming confidence that the Lagoon City project has received which will significantly contribute to the progress of the project development in the near future”. Mr. Al Nabhan added; “this successful Sukuk issue has further reflected the confidence in the company and we are hoping that this is just the first step towards further collaboration with such institutions in the future that will contribute to the development of the real estate sector in the State of Kuwait.”
Lagoon City is a sub-development of the much larger Kheiran Pearl City. As part the strategic sales and marketing plan devised by Ahlia Gulf Holding Company (AGHC), the Obligor has branded the 401 Sea Front and 155 Back Bay Plots as the “Lagoon City”. AGHC has undertaken the development of the Lagoon City residential village project with the objective of giving property investors the opportunity to own residential and/or coastal land overlooking prime sandy beaches in the remarkably unique location of Kheiran. Such property investors will have the possibility of building on these sites as per their personal preference (though subject to applicable general municipal zoning requirements).
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