Global fully manages own KD45 million bond issue

The main objective of the issue is to restructure the company's debt and invest the proceeds in the company's various activities.

Mrs. Maha K. Al-Ghunaim, Global's Chairperson and Managing Director said, "The primary objective of the current issue is to use the bond proceeds in Global's various growth activities, since the company is in the stage of entering in different investment opportunities in the region."

She added that the new issue is divided into two tranches; a Fixed Rate tranche valued at KD20 Million carrying a fixed coupon of 7.00% per annum, a Floating Rate tranche valued at KD25 Million carrying a floating rate of 6 month KIBOR+ 1.00% per annum, both the coupons are paid semi annually.

The bond issue is rated as BBB+ by Capital Intelligence, and it carries an attractive coupon rate paid on a semi-annual basis, she followed.

Mrs. Al-Ghunaim further mentioned that this is the second bond issue for Global. The previous bond was issued in 2004 of KD20 million that matures in 2009, also rated (BBB+).

Kuwait's market witnessed a halt in the bond market in 2006 as a result of the market indexes withdrawal that negatively affected the performance of all financial sectors in the GCC.

"Global supports this type of lending and corporate finance tools to finance its investments and reach its goals and fulfill its expansion strategy. This bond issuance will work as a strong pad for a successful and dynamic money market in the region," Global Chairperson said.

She encouraged local and regional investment companies to utilize more of such tools to elevate the capital market benchmarks in the region and to provide the investors here with more options to diversify their portfolios, sources of income, and lower risk.

Global has managed a two-tranches, five years bond issue in 2005 for Housing Finance Company KSCC (ISKAN) worth KD25 million. It also managed a similar issue worth KD20 million for Al Ahlia Investment Company K.S.C. "Al Ahlia" in that same year.

Global listed 21 companies in the last few years and issued bonds worth KD335 million. In addition, the company managed or co-managed the listing of several financial companies and acquired large shares in companies and financial institutions in the geographic region stretching all the way to North Africa, Middle East, and South Asia.