Kuwaiti consumer finance firm Commercial Facilities Company (CFC) and the National Bank of Kuwait (NBK) recently signed agreements relating to the CFC 18 million Kuwaiti dinar ($58.9 million) bond issue. The bonds, which mature in five years, carry a coupon interest rate of 5 7/8 percent, payable semiannually in arrears on November 15 and May 15 of each year. NBK acted as sole manager for this issue.
This bond issue falls in line with CFC's strategy of diversifying its sources of funding, stated Abdallah Saud Al-Humaidhi, CFC chairman and managing director, adding that the proceeds will be used for general corporate purposes. Al-Humaidhi noted that the bonds witnessed heavy demand in the local market from financial institutions, corporations and individuals. NBK Chairman Mohammed Abdul Rahman Al-Bahar announced that this issue was more than 60 percent oversubscribed. — (menareport.com)
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