Quotes: US MENA   Enter Symbol: NewsLetter: Search: advanced

Kuwait investment firm plans to sell dollar bonds  Join our daily free Newsletter

MENAFN - Khaleej Times - 25/01/2014

No. of Ratings : 0
Add to Mixx!


 


(MENAFN - Khaleej Times) Kuwait Projects Co, with interests from banks to real estate, started investor meetings and may raise as much as 500 million from the sale, the company said on Wednesday. The yield on the October 2016 bond of Kipco, as the company is known, tumbled 152 basis points since last year's high in June to 3.3 per cent on Thursday.

Kipco, whose biggest shareholder is controlled by the Al Sabah ruling family, stands to benefit from the 110 billion in planned spending for projects including a power station and an oil refinery. It would be the first dollar bond from a Kuwaiti company since 2012, according to data compiled by Bloomberg.

It's "a good time to issue as the rates have eased," and because the Fed may announce more monetary tapering at its meeting next week, Montasser Khelifi, a Dubai-based senior manager for global markets at Quantum Investment Bank Ltd., said in e-mailed comments. "It's also interesting for investors to see an issue from Kuwait as we haven't seen one for a long time."

Cutting costs

Bond sales in the six-nation Gulf Cooperation Council, which includes Saudi Arabia, fell 4.1 per cent in 2013 to 41.1 billion as issuers held off after Treasury yields rose. Societe Generale SA expects sales to rebound this year as several issues are revived.

Kipco last sold dollar bonds in July 2010, raising 500 million from 10-year securities at a coupon of 9.375 per cent. The bonds were trading at a yield of 5.47 per cent.

"I don't think they would need to pay more than 4.5 per cent" at current rates on a five-year bond, Amol Shitole, a credit analyst at SJS Markets Ltd. in Bangalore, India, said by phone.

Kipco will sell the debt under its euro medium-term note programme if market conditions permit, a person familiar with the deal said January 21. The company hired BNP Paribas SA, HSBC Holdings Plc and JPMorgan Chase & Co to arrange investor meetings in Asia, the Middle East and Europe, said the person, who asked not to be identified because details are private.

Yields decline

The Fed said in December it will cut monthly bond buying by 10 billion in January to 75 billion amid signs of an economic recovery.

While it will probably keep trimming the purchases by the same amount at each Federal Open Market Committee meeting, economists forecast in a Bloomberg survey January 10, the yield on benchmark US 10-year notes has declined 18 basis points, or 0.18 of a percentage point, this month to 2.85 per cent.

Kipco may use the proceeds from the sale for acquisitions, a capital increase at its Turkish unit or for refinancing its bond that comes due in 2016, Olga Budovnits, a Zurich-based emerging-market credit analyst at Union Bancaire Privee, said by e-mail on January 21.

 






  MENA News Headlines


 






Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country
Marketwatch News
UPI News
Comtex News

IPO News
Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

US Markets Details

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Investment Game
Economic Calendar
Financial Glossary

My MENAFN
Portfolio Tracker

Voting

Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2000 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help