(MENAFN - Arab Times) Burgan Bank recently acted as a co-lead manager in a KD 26.5 million covered bond issue for Alargan International Real Estate Company. The announcement comes at a time where domestic corporate bonds issuance is witnessing an increased momentum. The signing ceremony included Khalid AL Mash'an, Chairman and managing Director of Alargan International Real Estate Company, Sadoun Ali CEO and managing Director of KIPCO Asset Management Company (KAMCO), Manaf AL Hajry CEO- Kuwait Finance Center (Markaz), May Al Mudhaf Chief Investment Banking and Treasury Officer at Burgan Bank and Venkat Menon Chief Operations Officer from Burgan Bank.
The recently issued bonds have received a long term issue rating investment grade of BBB- from Capital Intelligence, one of the world's leading international rating agencies. The bonds have been issued only to mature after five years with a basis of two tranches:
* KD 1 million with a fixed annual coupon of 6.25%
* KD 1 million with a variable interest of 3.50% over the discount rate from the Central Bank of Kuwait (currently standing at 2.50%), and a maximum of 7.00%
On the occasion, May Al-Mudhaf, Burgan Bank's Chief Investment Banking and Treasury Officer said: "We are proud to be one of the key partners in the issuance of this bond. Traditionally, Burgan Bank has been a leading participant in the growing bond arena. The bank continues to achieve excellent returns for its shareholders, and is expected to strengthen its top-line performance, having witnessed a growth in its loan portfolio across commercial and private financial services segments."
"Such transactions are vital to encourage companies who enjoy high capital adequacy ratio rates to issue bonds as well as sukuks to be able to achieve their desired levels of liquidity, Furthermore, the bank is keen to offer a wide array of investment products for its clients and the opportunity to participate in Al Argan's bond issue was one of them" added Al-Mudhaf.
"The issuance of this bond comes at an opportune time as we witness a renewed growth of the local bonds market, more so for the real estate sector," commented Mr. Khalid Al Mash'an, Chairman and Managing Director of Alargan International Real Estate Company. "This is the first bond issued by a real estate company since June 2010. We are also looking forward to more support from various government institutions, with an overall objective of developing local bonds issuance."
Established in 1977, Burgan Bank is the youngest commercial Bank based in Kuwait, with a significant focus on the corporate and financial institutions sectors, as well as having a growing retail and private bank customer base.
Burgan Bank has four majority owned subsidiaries: Gulf Bank Algeria - AGB (Algeria), Bank of Baghdad - BOB (Iraq), Jordan Kuwait Bank - JKB (Jordan) and Tunis International Bank - TIB (Tunisia), (collectively known as the "Burgan Bank Group").
The Bank has continuously improved its performance over the years through an expanded revenue structure, diversified funding sources, and a strong capital base. The adoption of state-of-the-art services and technology has positioned it as a trendsetter in the domestic market and within the MENA region.
Burgan Bank's brand has been created on a foundation of real values - of trust, commitment, excellence and progression, to remind us of the high standards to which we aspire. 'People come first' is the foundation on which its products and services are developed.
Excellence is one of the Bank's four key values and Burgan Bank continually strives to maintain the highest standards in the industry. The Bank was re-certified in 2010 with the ISO 9001:2008 certification in all its banking businesses, making it the only Bank in GCC to receive such accreditation. The Bank also has to its credit the distinction of being the only Bank in Kuwait to have won the JP Morgan Chase Quality Recognition Award, twelve years in succession.
Burgan Bank won the prestigious "Banking Web Awards" prize in the commercial and corporate Category for Kuwait. In 2010 Burgan Bank was awarded with the "Best Internet Banking Service award" from Banker Middle East Awards. Burgan Bank was recognized in 2011 as Kuwait's "Best Private Bank", by World Finance.
The bank also won, in 2011, the coveted "International Platinum Star For Quality" award from Business Initiative Directions, and "The Best Technical Award" from Banking Web Awards.
Burgan Bank, a subsidiary of KIPCO (Kuwait Projects Company), is a strongly positioned regional Bank in the MENA region.