Kuwait Projects Company (KIPCO) has completed the issuance of 103.1 million Kuwaiti dinars ($335.8 million) worth of sukuk, marking the firm's debut in the Islamic finance market. It is also the first Kuwaiti company to issue sukuk in Kuwaiti dinars.
The sukuk certificates of indebtedness were issued by Kuwait Projects Sukuk Company, established in the Cayman Islands as an exempted company with limited liability, with Kuwait Projects as the obligor, the company said in a statement. This issuance is part of KIPCO's $2 billion sukuk issuance program.
The 6-year sukuk consist of 36% (37.05 million dinars or $120.7 million) profit-rate resettable certificates with an initial profit rate of 7% per annum (3% above Central Bank of Kuwait discount rate up to a maximum of 7.5%). The fixed-rate certificates offer an annual profit rate of 6.5% worth 66.05 million dinars ($215.1 million).
Proceeds from the issuance will be used for general corporate purposes. The certificates are murabaha and wakala-based sukuk denominated in Kuwaiti dinars and Sharia compliant. The sukuk will be listed on the International Stock Exchange in London.
Boubyan Capital, Kamco Invest and Wafra Investment Bank acted as joint lead managers and joint bookrunners for the issuance.
