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.
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