Quotes: 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 cost



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 declin



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

 


Khaleej Times




  MENA News Headlines
 Nov 26 2014 - Kuwait's Mabanee to invest USD910m on projectMENAFN
(MENAFN) Mabanee, the Kuwaiti real estate firm, announced it is planning to spend USD910 million on building the fourth phase of its development of The Avenues mall, Arabian Business reported.The ...

 Nov 26 2014 - Oman's Sezad, OOC sign MoU on Duqm refineryMENAFN
(MENAFN) The Special Economic Zone Authority of Duqm (Sezad) announced it has signed a Memorandum of Understanding with the Oman Oil Company (OOC) regarding construction work on the planned refinery ...

 Nov 26 2014 - Emirates Airlines adds new flight to Maldives routeMENAFN
(MENAFN) Dubai's Emirates Airline announced it has added a third daily service to Mal", the capital of the Maldives, which will begin servicing passengers on December 1, Arabian Business reported.The ...

 Nov 26 2014 - Abu Dhabi Int'l passenger traffic up 17 percent in OctoberMENAFN
(MENAFN) Abu Dhabi International Airport announced that it registered an increase by 17 percent in its passenger in October, Arabian Business reported.The airport said that it has registered a total ...

 Nov 26 2014 - Oman's Rolls-Royce sales grow 46 percent in Jan.-Oct.MENAFN
(MENAFN) Rolls-Royce Motors announced it has registered an increase in its sales in Oman by 46 percent during the January-October period, compared to the same period last year, Times of Oman ...

 Nov 26 2014 - GCC petrochemical industry to decline on falling oil pricesMENAFN
(MENAFN) Gulf countries' petrochemical industry is expected to begin facing challenges due to the falling of oil prices, US shale gas and China's polyethylene, Khaleej Times reported.These factors ...

 Nov 26 2014 - Syrian economy decline 40 percentMENAFN
(MENAFN) According to the Undersecretary General for Humanitarian Affairs and Emergency Relief Coordinator, Syria's economy has declined by almost 40 percent since 2011, due to the effects of the ...

 Nov 26 2014 - Qatar to invest USD43.62b on railways infrastructureMENAFN
Qatar's Ministry of Transportation announced it is currently working on the development of advanced transport infrastructure in the country, with several projects currently in the planning stages or ...

 Nov 26 2014 - Dubai's Kcal to expand to EgyptMENAFN
(MENAFN) Kcal, the Dubai-based restaurant chain announced it is planning to expand its business in the MENA region with its first store slated to open in Egypt by December this year, followed by 14 ...

 Nov 26 2014 - MENA's value of M&A deals hit USD9.3b in Q3MENAFN
(MENAFN) The Middle East and North Africa's (MENA) merger and acquisition activity increased by 17 percent during the July-September period of this year, with 109 deals announced compared with 93 ...

more...


 






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

Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

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
Economic Calendar
Financial Glossary


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


 
© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help