Kuwait-based Sultan Center Food Products Company said it has completed the issuance of the first KD-denominated convertible in the country with a nominal value of KD9.65 million ($31.4 million) for a 10-year term.
The largest independent retailer listed on the Boursa Kuwait, Sultan owns and operates a series of supermarkets across the Middle East. It runs 47 stores in Kuwait, spanning from Jahra to Nuwaiseeb, through three distinct store concepts.
Kuwait Financial Centre (Markaz) is the structuring advisor and sole lead manager for the country's first convertible bond.
The securities were issued through a private placement with a total fixed coupon rate of 8.0% per annum, payable partly in cash and partially deferred, on a semi-annual basis; the convertible bonds can be converted at the option of the bondholder during the first five years of the bonds’ terms into common ordinary shares in the capital of the issuer, said the statement.
The bonds were issued as part of a financing restructuring plan that Sultan started in 2017, and the net proceeds from the issue of the bonds will be utilized for general corporate purposes.
CEO Khadija Oubala said: "We at Sultan have reached a new distinguished milestone with the issuance of the convertible bonds. The success of the offering will further improve the outlook of the company. It will reinforce our efforts to enhance our financial performance and creditworthiness and allow us to move forward with our growth plans."
"It is also a strong testimony to the Kuwaiti capital market’s standing as a flourishing investment destination providing creative and lucrative opportunities for issuers and investors," noted Oubala.
Sultan’s Chief Financial Officer (CFO) Haitham Shalaby said: "We are happy to work with Markaz; the Bond is timely, we issued it on equitable terms for all stakeholders, and it was efficiently executed."
Markaz’s CEO Ali H. Khalil said: "As the structuring advisor and sole lead manager, we take pride that our name is associated with the first KD convertible bond to be issued in Kuwait. The prominence and the long-standing name of The Sultan Centre in the Kuwaiti market contributed to its success."
Markaz Executive VP and Investment Banking (Capital Markets and Fixed Income) Rasha Othman said: "The new debt issuance showcases our capabilities in structuring innovative products. It also adds to our long track record of placing and executing successfully large and unconventional transactions helping our corporate clients from various sectors meet their financing needs."
"In addition to structuring the first convertible bond, Markaz’s track record includes the first BOT-backed bonds in Kuwait, the first sukuk for a Kuwaiti real estate company, and the first high-yield bonds in the country," stated Othman.
"It is our highly qualified team of investment banking professionals with extensive experience, outstanding technical execution capabilities, and in-depth industry knowledge that enables us to continue serving the needs of capital market players, businesses, and investors," she added.-TradeArabia News Service