Sultan Center Food Products Company K.S.C.P. (“Sultan”), as the Issuer, and Kuwait Financial Centre (“Markaz”), as the Structuring advisor and Lead Manager, announced in a joint statement the success of completing the first KD-denominated convertible bond issuance for Sultan with a nominal value of 9.65 million Kuwaiti Dinars for a 10-year term. 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.
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.
Ms. Khadija Oubala, Chief Executive Officer (CEO), 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.”
Mr. Haitham Shalaby, Sultan’s Chief Financial Officer (CFO), 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.”
Mr. Ali H. Khalil, Markaz’s Chief Executive Officer (CEO), stated: “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.” He also expressed Markaz’s sincere gratitude to the Capital Markets Authority for their support and continuous cooperation for innovative investment tools and the development of the Kuwaiti capital market.
Ms. Rasha Othman, Executive Vice President, Investment Banking (Capital Markets and Fixed Income) at Markaz stated: “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. 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.
Sultan Center For Food Products Company Successfully Completes the Issuance of the First Convertible Bond in Kuwait
14/05/2023