Global Investment House lead manages a USD 25 million bond issue for Shuaa Capital

Attending the signing ceremony on behald of Shuaa Capital Mr. Ziad Makkawi, Executive Managing Director and Mr. Karim Mitri, Chief Finacial Officer and on behalf of Global Investment House Mrs. Maha K. Al-Ghunaim, Vice Chairman & Managing director and Mr. Omar. M. El-Quqa, Executive Vice President.

The bond is issued in US$ with a very attractive coupon of LIBOR +200 basis points. Shuaa Capital was assigned an investment-grade bond rating of BBB- by Capital Intelligence, rewarding the efforts of the shareholders and the management to raise the profile of the company.

Shuaa Capital was incorporated in 1979 in Dubai, UAE as Arabian General Investment Corporation ("AGICO"') for the purpose of promoting capital inflow into the Arab world. Shuaa is listed on both the Kuwait Stock Exchange and the Dubai Financial Market.

With the new management in place and the Company's focus on generating 'annuity' income through fund management and providing the whole range of financial services, the fee income is expected to increase and create a steady and stable income profile. The efforts of the new management started to have impacts and the performance of the company has highly improved and Shuaa generated total revenues of AED31.6mn for the year ended March 2002. Total assets as on 31st March 2002 stood at AED530mn, up from AED407.47mn as on 31st December 2000.

Commenting on the issue from his office in Dubai previously, Mr. Iyad Duwaji, SHUAA Capital's Chief Executive Officer said: "This is a landmark transaction for the firm since it is the first time we tap the capital markets in the region. The markets in the GCC have seen a strong pick-up in new issuance this year, and we expect this to continue and to play an active roll in its development."

In his speech, Mr. Makkawi touched on the importance of the Issue which lies in the fact that it was entirely structured and placed by regional financial institutions demonstrating not only the existence of investor appetite for this type of product but also the investment banking expertise.

He also added that the intended purpose of the new funds will be used by the firm in the normal course of its business and will go towards strengthening the firm's position as one the UAE's leading financial institutions.

Mrs. Al-Ghunaim mentioned that Global is one of the very few investment companies in Kuwait which fully recognizes the potential of the regional bond market and is committed to its development. Global is very keen on this issue for many reasons: one being a US$ issue, yielding an attractive coupon, with a short maturity for a regional player such as Shuaa Capital.

Mrs. Al-Ghunaim added that the total size of the issue is USD 25 million and was subscribed for by investors from the GCC countries and Jordan.

Mrs. Al-Ghunaim concluded that this issue should pave the way for Arab corporates to borrow through the issuance of bonds and benefit from the lucrative regional market.

ENDS