Islamic finance deal of the year – Kuwait: Kuwait Projects Company’s KD103 million sukuk
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Islamic finance deal of the year – Kuwait: Kuwait Projects Company’s KD103 million sukuk



Name of borrower: Kuwait Projects Company

Amount: KD103 million

Tenor: 6 years

Underwriter: KFH Capital, Kamco Invest and Warba Bank

Date: Jul 2023



The Kuwait-headquartered diversified investment conglomerate Kuwait Projects Company is Kuwait's first non-financial institution corporate entity to issue a sukuk transaction denominated in Kuwaiti dinars. The issuance wins Kuwait's Islamic finance deal of the year award this year.

The offering comprised two parts: a KD66,050,000 ($214 million) fixed-rate sukuk and a KD37,050,000 floating-rate sukuk. It was the first issuance under Kipco’s equity asset based, multi-currency international sukuk programme featuring a wakala/murabaha structure.

The transaction paved the way for Islamic capital market participants to explore new assets for sukuk structuring

This structure was novel in the Kuwaiti market, incorporating shariah-compliant hedging mechanisms, with the company’s equity investments serving as wakala assets of the underlying sukuk.

This arrangement guaranteed that investor funds were hedged until the sukuk’s maturity.

The transaction paved the way for Islamic capital market participants to explore new assets for sukuk structuring, especially for issuers with limited ijara assets.





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