ACIC ‘Lead Manager’ for NIG KD25 million Bond Issuance

KUWAIT: Ahli Capital Investment Co KSCC (ACIC) has announced it is to be lead manager and subscription agent for National Industries Group’s (NIG) prospective KD25 million senior debt and asset backed bond, which was announced on 13 November 2016, following regulatory clearance earlier this year.

ACIC, a fully owned subsidiary company of Al Ahli Bank of Kuwait KSCP (ABK), will act as the Lead Manager and Subscription Agent with ABK as the Paying Agent. Al Ruwaiyeh& Partners (ASAR) is the legal advisor to the lead manager and subscription agent with Al Hossam Legal (Al-Turqi & Partners) acting as legal advisor to the issuer.

The bond will have a floating interest rate of 2.25% per annum over Central Bank of Kuwait (CBK) Discount Rate and will be backed by a portfolio of Kuwait Stock Exchange (KSE) listed securities managed by ACIC with an initial LTV of 83% and trigger LTV 89%.

The bond will reach maturity after five years with an option to call the bond by the end of the third year. Muhsen Al Harbi, CEO of ACIC said. “ACIC is very proud to play a key role in structuring and leading this unique transaction for NIG, as well as providing our clients and investors in general with an opportunity to invest in an excellent KD denominated investment grade product. Our goal is to offer clients the very best world-class advisory services to assist them in developing and achieving their business objectives and we appreciate NIG’s trust in our partnership approach.”

Capital Intelligence, the international rating agency, has rated the issue as ‘BBB’, supported by the good operating performance of NIG as well the segregated securities portfolio of liquid equity investments held by ACIC as an independent custodian. NIG has said it plans to use the net proceeds from the offering for general corporate purposes.