Kuwait: Firms market sukuk to Lagoon City project
Three Gulf-based firms on Tuesday started to market sukuk (Islamic shares) in the Lagoon City project, which is worth US$ 125 million and is located in Kuwait's Kheiran Pearl City real estate project, Kuna reported.
The three firms - Kuwait Finance House, Liquidity Management Centre and Muthanna Investment Company - have announced that the maturity period for the sukuk issue was two years and would provide investors 200 points on the London InterBank Offered Rate (LIBOR) dollar-denominated indicator.
The Kheiran Pearl City project which was initiated in February 2004 sets a precedent in Kuwait for the private sector contribution towards the urban development outside the capital Kuwait City. The project development will be over a total area of 731,000 sq. meters with an estimated total cost of KD 120mm (some US$410 million) consisting of 545,000 sq. meters of water-front plots; 106,000 sq. meters of back-bay plots and 80,000 sq. meters of commercial plots.