Al Ahlia Gulf Holding Co is arranging a $100 million (Dh367.29 million) musharaka sukuk (Islamic structured financial instrument) issue to finance the Lagoon City residential and commercial real estate development, which is part of the Kheiran Pearl City project in Kuwait.
The Kheiran Pearl City will cover 731,000 square metres at an estimated cost of 120 million Kuwaiti dinars (Dh1.51 billion) consisting of 545,000 square metres of water-front plots, 106,000 square metres of back-bay plots and 80,000 square metres of commercial plots.
Al Ahlia Investments, the parent company, announ-ced yesterday it would mandate Kuwait Finance House, Liquidity Management Centre and Mutha-nna Investment (mandated lead arrangers) to jointly arrange the sukuk.
Abdul Aziz Ebrahim Al Nabhan, chairman and managing director of Al Ahlia Gulf Holding, said: "The engagement of the mandated lead arrangers is another significant step forward in the development of the Lagoon City that has already attracted considerable investments from the Kuwaiti public."
The $100 million sukuk will have a two-year maturity and is structured on the musharaka contract in compliance Sharia principles by the Liquidity Management Centre. It has also been appointed the Islamic structuring adviser for the transaction.
The musharaka sukuk will be backed by the Lagoon City project assets and supported by Al Ahlia Investments, which has a BBB+ rating from Capital Intelligence, an independent rating agency.
The sukuk issue will be launched at roadshows in Kuwait, Dubai and Bahrain on dates that will be announced shortly.
