Kuwait-25 June, 2013: United Real Estate Company (URC), the Middle East's leading real estate development company has announced the successful completion of a KD 60 million (US$ 211.8 million) Bond Issue which was oversubscribed by almost 50%.  KIPCO Asset Management Company (KAMCO), Gulf Bank, and Burgan Bank were the Joint Lead Managers of the Issue.

The five-year Bond was rated investment grade BBB- with a Positive Outlook by Capital Intelligence and was issued in fixed and floating rate tranches of which, one will pay a fixed interest rate of 5.75% per annum, while the second tranche will pay a floating interest rate of 3.25% over the CBK discount rate, provided that the rate shall never exceed 1 percent per annum over the fixed rate for the fixed tranche. Interest will be paid quarterly in arrears and the bond will mature in 2018.  Subscribing customers will enjoy a Kuwaiti Dinar denominated fixed income investment opportunity which will deliver regular income in the form of quarterly coupon payments.  Redemption of the Bond will be upon maturity, at the end of the full five-year term.

The proceeds of the Bond will be used to refinance the KD 40 Mn bond ending on June 22nd, 2013 and the remainder for general corporate purposes.

Mr. Tariq Mohammed AbdulSalam, URC's Chairman stated: "The appetite of the market to the URC Bond Issue and the oversubscription is a testament to URC's strong financial credibility and sound management approach."

On the same note, URC's Chief Executive Officer, Mr. Mohammed Ahmed Al - Saqqaf added: "We are very proud to be adding this successful transaction to our accomplishments.  We are very pleased to partner with KAMCO, Gulf Bank and Burgan Bank to build a long standing, mutually beneficial relationship.  We would like to thank them for their efforts and also thank all regulatory agencies for their ongoing support and assistance."

On his part, Mr. Faisal M. Sarkhou, KAMCO's Acting CEO stated:  "The completion of this Bond issue is an important occasion for KAMCO and we are very proud of being a part of a bond issuance of this scale, not only for the Company, but on the level of the local capital markets.  KAMCO's team has experience in issuing Bonds, as we have completed three instances of bond issuances during 2012 for amounts exceeding KD 206.5 Mn for the largest and longest issue to date.  We at KAMCO are mindful of developing and supporting bond issues and sukuks for the diversity of debt tools for local companies that result in the economic and investment markets and Kuwaiti capital market.  We hope to contribute from this successful bond issue, by stimulating the local economy and restoring the trust of investing in the real estate market."

Commenting on this transaction, Mr. Adrian Gostuski, Burgan Bank's Group Chief Operations Officer said:  "We are honored to be one of the Joint Lead Managers of this Bond Issue.  With regards to this transaction, it reflects the level of trust that Burgan offers with regards to Bond Issues.  Burgan Bank aims to continuously offer investment opportunities to all their clients.  We believe that the healthy bonds market is the main driver in developing Kuwait's economy and private sector.  I would like to thank all the IPOs for their support and contribution to the success of this issue, as well as the government entities and companies that participated in the development of the local bonds market."

Mr. Michel Accad, Gulf Bank's CEO, said: "We are proud to have jointly led this United Real Estate (URC) bond issue, which was heavily oversubscribed. We wish to thank our private clients for their participation and their confidence in both URC and Gulf Bank. The success of this placement reflects our broad reach, which is unmatched in the local marketplace, as well as our expertise and skills in offering and structuring fixed income instruments that provide attractive investment alternatives for our clients."