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 seurities 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 30 2015 - Kuwait oil minister leaves post days before Opec meetingGulf Times
(MENAFN - Gulf Times) Kuwait named Deputy Prime Minister Anas al-Saleh as acting oil minister to replace Ali al-Omair (pictured) who became minister of public affairs and retained his role as state ...

 Nov 30 2015 - Dana Gas wins $1.98bn Kurdistan judgementGulf Times
(MENAFN - Gulf Times) ...

 Nov 30 2015 - India's SpiceJet 'receives' interest from Gulf airlinesGulf Times
(MENAFN - Gulf Times) Indian budget carrier SpiceJet Ltd, which has surged more than 280% this year, said it's received interest from Gulf airlines looking to acquire a stake."Some of the Gulf ...

 Nov 30 2015 - Qatar- Investment in healthcare makes for a healthy economyGulf Times
(MENAFN - Gulf Times) Under the wise and dynamic leadership of His Highness the Emir, Sheikh Tamim bin Hamad al-Thani, the growth and improvement in quality of Qatar's health sector has been a major ...

 Nov 30 2015 - GCC should adopt a holistic approach to managing urban water supply: ExpertGulf Times
(MENAFN - Gulf Times) The GCC (Gulf Cooperation Council) region should adopt a holistic approach to managing urban water supply, according to an expert at the Qatar Environment and Energy Research ...

 Nov 30 2015 - Brent crude dips on firm dollar ahead of OPEC meetingGulf Times
(MENAFN - Gulf Times) Brent crude futures dipped on Monday as traders remained cautious ahead of an OPEC meeting later this week and as a widely expected US interest rate hike strengthened the ...

 Nov 30 2015 - India- Kerala expects more tourists from the GulfGulf Times
(MENAFN - Gulf Times) Encouraged by the response it received at the Arabian Travel Mart held in Dubai in May, Kerala Tourism is conducting a series of roadshows in the Gulf region.The tourism board ...

 Nov 30 2015 - Carson meets Syrian refugees, opposes them coming to USGulf Times
(MENAFN - Gulf Times) Republican presidential candidate Ben Carson, who last week compared Syrian refugees to "rabid dogs," met with refugees in Jordan on Saturday and urged the US government to do ...

 Nov 30 2015 - IS executes 3,500 in Syria since declaring 'caliphate'Gulf Times
(MENAFN - Gulf Times) The Islamic State group has executed more than 3,500 people in Syria, including nearly 2,000 civilians, since declaring its 'caliphate' in June last year, a monitor said ...

 Nov 30 2015 - 16 killed in fighting for south Yemen provinceGulf Times
(MENAFN - Gulf Times) Yemeni loyalists supported by a Saudi-led coalition battled on Sunday to oust Iran-backed rebels from a southern province where they have made gains in recent weeks, with at ...




Click to Apply


Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  

Middle East North Africa - Financial Network

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


Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks

Saudi Arabia 

Economic Calendar
Financial Glossary

Financial Calculators

RSS Feeds [XML]

Corporate Monitor


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