Kuwait’s KIPCO mandates banks for bond issue of up to $500m, to repurchase debt

Dubai: Kuwait Projects Co has mandated banks to arrange a new US dollar-denominated bond issue of up to $500 million (Dh1.8 billion), the company said on Wednesday.

The new bond, which will have a 10-year maturity, will be part of KIPCO’s existing $3 billion euro medium-term note programme.

Citi, HSBC, Kamco and JP Morgan have been appointed to arrange the debt offer, which will be issued by KIPCO’s subsidiary Kuwait Projects Co SPC Ltd, registered at the Dubai International Financial Centre.

Separately, HSBC invited holders of KIPCO’s outstanding $500 million notes with a 4.8 per cent coupon and due in 2019 to tender their notes for repurchase.

Holders of the notes will be able to sell them for cash to HSBC at a price of 105.250 per cent.