Mubasher: Kuwait Projects Holding (KIPCO) has completed the issuance of bonds valued at KWD 100 million ($331 million) as the first issuance in the private companies sector in Kuwait for a seven-year tenor.

The demand for KIPCO’s subscription to bonds exceeded the supply by 1.45 times, according to a recent statement.

KIPCO issued the bonds in two tiers; the first one has a fixed annual interest of 5.25%, while the second tier has a floating annual interest rate of 2.25% above the discount price announced by the Central Bank of Kuwait (CBK).

The maximum level for the floating interest is 1% above the fixed interest rate.

It is worth noting that NBK Capital, KAMCO Investment, and Gulf Bank of Kuwait (GBK) have acted as the lead managers for this bonds issue.

Following this bonds issue, KIPCO will not have to repay any debts until mid-2019.

At the stock level, KIPCO closed Thursday’s session 6.69% higher at 335 fils.