Global lead manages a KD 25 million bond issue for Housing Finance Company K.S.C.C. 'ISKAN'

Sheikh Abdullah Al-Jaber Al-Sabah, ISKAN's Chairman, and Mrs. Maha Khaled Al-Ghunaim, Global's Vice Chairman & Managing Director, signed the agreement during a special ceremony that took place at Global headquarters.

After signing the agreement, Sheikh Abdullah said, "The bonds issue is to fulfill the company's desire to retain cash liquidity to achieve its strategic goals. ISKAN plans to expand its operations, products, and services in real estate housing finance."

"This issue will provide ISKAN with alternative finance sources for existing and upcoming projects and expansion activities in operations, and it proves the company's ability to provide liquidity from various sources," he added.

On the reasons why ISKAN chose Global to lead its bond issue, Sheikh Abdullah explained that it is due to "Global's extensive expertise in the investment sector and the capital market and the success it had in previous bond issue operations." He affirmed his trust in Global's abilities and its financial competence to lead the bonds issue.

The KD 25 million bond issue by ISKAN is composed of bonds in two tranches; the first is a KD 10 million fixed rate bond due in July 2010. The second tranche is a KD 15 million floating rate bond due in July 2010.

The Fixed Rate Bonds bear fixed interest at the rate of 6.75% per annum. The Floating Rate Bonds bear interest at the rate of 1.75% per annum over the discount rate declared by the Central Bank of Kuwait for Kuwaiti Dinars in effect on the rate fixing date. Interest on the Bonds will accrue as of the issue date of the Bonds and will be payable semi-annually in arrears commencing six months from the issue date of the Bonds.

Sheikh Abdullah pointed out that the company's trust in its ability to issue the bounds is based on the strength of its management and its current and expected performance, which lead to Capital Intelligence Ltd. assigning the bonds a BB+ domestic bond rating.

The rating is a vital requirement to issue the bonds for expanding ISKAN's operations and projects.

Sheikh Abdullah spoke briefly on the services ISKAN provides such as real estate evaluation using a detailed data base for all the areas and buildings in Kuwait, real estate studies and consultations, feasibility studies for residential, commercial and investment projects.

The services include real estate locating services around Kuwait, mortgage for commercial residential buildings owners in select areas to help them construct new buildings that will improve and elevate the country's civilized image. ISKAN also provides mortgage services for non-citizens who seek to find a proper home in the country.

ISKAN's Chairman said that the one of the major aims of the company is to play a major role in solving the housing problem in Kuwait, and it has already participated last year in a number of real estate exhibitions in Kuwait and has always presented viable financing solutions to the real estate sector.

Sheikh Abdullah also praised Global's undertaking of the bond issue and affirmed his trust in its experience and know-how in conducting this task.

"Global has the experience, knowledge, and know-how to execute this financial operation and reach the goals we have set together for this issue," he concluded.

From her side, Mrs. Al-Ghunaim thanked ISKAN for choosing Global as the lead manager for its bond issue. "This is in tune with our active role to support the bound market as we sincerely believe it is a basic vital block in building a solid capital market," she said.

She stated that Kuwait's market is witnessing an upsurge in the number of bond issues, reaching 38 issues, 30 of total KD586 million, in addition to 8 issues of over USD1 billion.

"This indicates that many companies are relying on this type of lending tool in light of encouraging the financial situation in the country. On the otherhand, we see an influx of investors towards the bond market to protect their investment portfolios from market fluctuations, and to guarantee high returns seldom found in other financial market tools," Mrs. Al-Ghunaim concluded.

ISKAN was incorporated in April 2002 as a Kuwaiti closed shareholding company. The Company's strategy focuses on financing residential and other real estate facilities in addition to various real estate investment activities. Furthermore, ISKAN provides finance for the various players in the real estate market such as individuals, and commercial purposes (investment and trading). ISKAN plans to expand its income capacity by funding its financing activities through the KD 25 million bond issue.

ISKAN's market strategy emphasizes the importance of the company's relationship with its customers, and its innovative services reflecting efficiency and quality. ISKAN has introduced the "One Stop Shop" concept where clients obtain a wide scope of real estate services in addition to specialized professional advice. ISKAN has also identified many market segments in which real estate services and products have been difficult to obtain especially for those who are not eligible for real estate loans from the Credit & Savings Bank.