URC’s CEO, Mr. Mohammed Ahmed Al-Saqqaf
Gulf Bank recently hosted an evening at Sheraton Hotel to announce their appointment as Joint Lead Manager in a five year KD 60 million bond issue for United Real Estate Company (URC), a leading real estate development company in the Middle East. The bond has been rated BBB- with a positive outlook by Capital Intelligence. The event was also an opportunity for Gulf Bank to offer this investment opportunity to its private and corporate clients.
The evening commenced with a presentation from URC’s CEO, Mr. Mohammed Ahmed Al-Saqqaf, introducing URC as the regions’ leading real estate development company with total assets of KD 556.6 as of December 31st, 2012. URC’s majority shareholder is Kuwait Projects Holding Company (KIPCO), one of the largest and most diversified holding companies in the region. Mr. Al Saqqaf highlighted URC’s projects and strategy moving forward, as well as the strong financial position of the issuer.
During his presentation, Mr. Al-Saqqaf said, “The five-year bond will mature in 2018 and will be issued in two tranches, subject to investor demand. One of the tranches will pay a fixed interest rate of 5.75% while the other will pay a floating interest rate of 3.25% above the CBK discount rate. Subscribing customers will enjoy a Kuwaiti Dinar denominated fixed income investment opportunity which will deliver regular income in the form of quarterly coupon payments with redemption at maturity of the five year term. We are very pleased to be partnering with Gulf Bank and look forward to a long standing, mutually beneficial relationship together.”
Mr. Michel Accad, Gulf Bank’s Chief Executive Officer, said: “The support we have received from the local investment community is a clear indication of the strength of the issuer and the strong local demand from the investment community. The opportunity to subscribe to the bond will be providing our customers with a steady income and an enhanced yield for their investment portfolios compared to fixed deposits. Our role in this bond marks a significant milestone for Gulf Bank in both providing our customers with a wide range of diversified investment opportunities and utilising our own skills as a bond arranger and structurer. We are very pleased to partner with United Real Estate Company in this venture and we are optimistic that this agreement will be the first of many similar collaborations in the future.”