Global announced that it has today paid KD20 million bond on its maturity.
Settlement of KD20 million bond on its due date of 23 December 2009, was one of the conditions precedent to three year amortising facilities signed with each of Global’s 53 lending banks on 10 December 2009. Meeting this condition represents a significant milestone for Global. In the restructuring, other than the grant of security, the terms of the three bond issues of KD115 million (US$0.40bn) by Global remain unchanged. Even during the period of debt default, that ended recently, the semi-annual bond coupons were serviced as and when they fell due.
Bader AL-Sumait, Chief Executive Officer of Global commented:
“Following the conclusion of our debt restructuring on 10 December 2009, full repayment of KD20 million bond on its due date of 23 December 2009, is a testament to Global’s commitment to meet its obligations henceforth, as and when they fall due.
Global, through its investment banking franchise, had played an important role in development of KD bond market in Kuwait. We are very proud that now, even as an issuer, we have been able to safeguard the image of this market by meeting our obligations as they fell due.
We thank all the company’s debtors, particularly the bondholders and KIPCO Asset Management Company (KAMCO), the representatives of the Bondholders’ Association, for their support throughout the past few months, and assure them of Global’s commitment to all its stakeholders.”
Mr. Saudoun Abdullah Ali, Chief Executive Officer of Kipco Asset Management Company (KAMCO) and the representative of the Bondholders’ Association stated:
“Global’s repayment of KD20 million bond on its due date is an excellent news for Kuwaiti bond market and confirms Global’s commitment to honour its obligation and will positively influence the investors’ confidence.”
It is worth mentioning that both Global and KAMCO played a major role in developing the bond market in Kuwait over the past few years. They have encouraged companies to borrow through bonds; launched and managed several bond issues in Kuwait; and managed funds investing in bonds issued by Kuwaiti companies.
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