Gulf Investment Corporation issues 300m Swiss franc bonds

Following GIC's EMTN Programme update and as part of GIC's on-going initiatives to diversify its fixed income investor base, the company opted to complete a series of investor meetings in Zurich and Geneva on 9th and 10th October respectively. Having gauged investor appetite following this well received roadshow, coupled with a highly favourable market backdrop, a trade was launched on 16th October 2012 offering a minimum size of CHF100m. Positive momentum and strong investor demand garnered substantial high quality orders, ultimately enabling the lead managers to close the books with a final offering size of CHF 300 million at a coupon of 2.750%, maturing 16th November 2015, where the net proceeds of the issue are to be used for GIC's general corporate purposes.

GIC is the first Middle Eastern issuer to access the Swiss Franc market in more than 20 months, and in doing so achieved some historic milestones. This transaction marks the largest CHF public offering ever printed by any Middle Eastern issuer, and has achieved a record all-time low coupon within the CHF market for all Middle Eastern issuers. Moreover, the transaction successfully availed a new European investor base for GIC's funding pool.

Hisham Al-Razzuqi, Chief Executive Officer, commented on the successful transaction, saying: "We are delighted to have accessed the CHF market, broadening our investor base and introducing our credit to a high quality European market. The growth in financial linkage between Switzerland and the Middle East over the last few years, and more recently, the dearth in supply from Middle Eastern credits, has presented notable demand for an issue from GIC".

Established in 1983, GIC is a regional financial institution owned entirely and equally by the six GCC states of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE. GIC strives to provide a comprehensive set of financial services that promote development of the private enterprise and foster economic growth in the GCC. GIC has emerged as a regional leader in its chosen fields, and has successfully promoted and developed projects in the GCC across a range of sectors, including financial services, petrochemical, metal, power, utilities, and communications.