Wednesday, August 3, 2011

Kuwait's GIC issues RM750m debt notes

KUALA LUMPUR: Kuwait's Gulf Investment Corporation GSC issued RM750 million (US$253 million) debt notes under its existing 20-year RM3.5 billion (US$1.18 billion) Sukuk Wakalah Bi Istithmar medium term notes programme (GIC Sukuk).

The GIC issued the RM750 million debt notes on Wednesday, Aug 3, which was the second issuance from the GIC Sukuk and the fourth issuance from GIC in Malaysia since 2008.

AmInvestment Bank Bhd is the sole lead manager for the GIC Sukuk issuance while AmIslamic Bank Bhd is the transaction agent for the commodity trading via the Suq Al-Sila' trading platform on Bursa Malaysia.

The GIC Sukuk, which was assigned a long term rating of AAA by RAM Rating Services Berhad, would enable GIC to tap the Malaysian capital markets for long-dated funding and improve its asset-liability management, thereby mitigating liquidity and interest rate risks.

This second issuance from the GIC Sukuk in 2011 has a tenure of five years and carries a semi-annual profit payment of 4.90% per annum.

In March this year, GIC had sold its first tranche of RM600 million (US$202 million) of five year GIC Sukuk in Malaysia at a yield of 5.25% per annum.

Malaysia's benchmark five-year Islamic government securities last fetched a yield of 3.59% per annum.

GIC and AmInvestment Bank had conducted investor presentations in Kuala Lumpur in mid July followed by an accelerated private placement process.

Despite the recent uncertainties in the global markets, the issuing pricing process was competitive and managed to come in tighter than the issuance in March, meeting with GIC's current target pricing levels.

A broad range of local investors including fund managers, insurance companies, financial institutions and government agencies participated in the issue which represents the largest issue launched to-date for GIC.

In 2008, GIC issued its inaugural dual-tranche conventional bonds with tenures of five years (RM600 million) and 15 years (RM400 million) in the Malaysian capital markets, the first by a GCC issuer.

No comments:

Post a Comment