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14/09/2022

National Industries Group Holding Successfully Completes KD 40 Million Bond Issuance with Joint Lead Managers Markaz and Gulf Bank

  • Ahmed Hassan: National Industries Group Holding’s latest achievement marks a new milestone
  • Ali Khalil: Markaz is consolidating its leadership in the Investment Banking sector
  • Tony Daher: Our recent achievement is a testament to Gulf Bank’s commitment to meeting the banking and investment needs of its customers

With National Industries Group Holding K.P.S.C. (“NIGH” or the “Group”) as the Issuer, and Kuwait Financial Centre “Markaz” and Gulf Bank serving as the Joint Lead Managers, the three parties announced in a joint statement the success of the KWD bond issuance for the National Industries Group Holding with a nominal value of 40 million Kuwaiti Dinars for a five-year term. The latest bond issuance demonstrates investors’ trust in the quality of the offer and the high creditworthiness of National Industries Group Holding, as well as the effectiveness of distribution by Markaz and Gulf Bank as the lead managers. Furthermore, the issuance marks the first Kuwaiti Dinar-denominated bond issuance so far in Kuwait in 2022.

The National Industries Group Holding bonds were issued in two tranches, the first with a fixed rate at 5.25% per annum, payable on a quarterly basis, and the second tranche with a floating rate at 2.25% above the Central Bank of Kuwait (CBK) Discount Rate, and payable on a quarterly basis.

The new bonds mark the seventh debt issuance by National Industries Group Holding. It is worth noting that these bonds, due in 2027, are issued in Kuwaiti Dinars and have a credit rating of (BBB-) from Capital Intelligence.

Mr. Ahmed Hassan, CEO of National Industries Group Holding , said: “With its seventh bond issuance coming to fruition, National Industries Group Holding has reached a new distinguished milestone. The offer’s success reinforces our reputation for creditworthiness and dependability as a highly diversified business with robust fundamentals. It is also a strong testimony to the Kuwaiti capital market’s standing as a flourishing investment destination that provides lucrative opportunities for both issuers and investors.”

He continued: "In addition to the flexible structure and fair pricing of the new bonds, the issuance’s effective execution played a critical role in the wide participation of investors. As the main managers of this process, both Markaz and Gulf Bank have proven their abilities in arranging the subscription and distribution processes in an outstanding manner."

Hassan expressed that National Industries Group Holding is looking forward to strengthening its long-standing relationship with both Gulf Bank and Markaz, benefiting from their market strengths and extensive distribution networks to further grow their business.

Mr. Ali H. Khalil, CEO of Kuwait Financial Centre “Markaz,” said: “As we complete yet another bond issuance with success, we are pleased that Markaz’s mandate as a joint lead manager has been well executed, further cementing our market leadership in investment banking. The offer was attractive to investors given National Industries Group Holding’s outstanding reputation. The quality of the issue was complemented by the excellent execution and distribution efforts made by us and our partner, Gulf Bank.”

Mr. Khalil added: “The new debt issuance adds to our long track record of placing and executing successful large transactions helping our clients meet their financing objectives. We have assisted several local companies operating in various sectors in issuing bonds and ‘sukuk’ to secure the funding required to support their businesses. 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 capital market needs, companies, and investors.”.

On his part, Mr. Tony Daher, CEO of Gulf Bank, commented: “We are pleased to have participated in National Industries Group Holding’s latest bond issue as a joint lead manager with Markaz.”

He added: “The positive reception from investors and the successful completion of the National Industries Group Holding’s bond issue mark the outcome of both a strong offering and the successful execution of a strong Markaz-Gulf Bank partnership. Our latest achievement is a testament to Gulf Bank’s ongoing commitment to meeting the banking and investment needs of our clients. It also reflects Gulf Bank’s constant efforts to diversify its revenue streams and provide its shareholders with strong returns.”

Established in 1960, NIGH is a multi-industry conglomerate and a holding company headquartered in Kuwait regarded as a major player in the industrialization of modern Kuwait. NIGH’s highly diversified portfolio includes several successful business establishments, including Kuwait Cement Company K.P.S.C., National Industries Company for Building Materials K.P.S.C., Noor Financial Investment Company K.P.S.C and Mabanee Company K.P.S.C. NIGH was listed on Boursa Kuwait in 1984, and is currently a constituent of the Premier Market on Boursa Kuwait.

As at 30 June 2022, the Group's total assets reached KWD 1,442 million with an equity attributable to owners of the Parent Company of KWD 513 million. The Group achieved net profits attributable to owners of the Parent Company of KWD 31.2 million for the six months ended 30 June 2022 compared to KWD 43.6 million for the same period in 2021.

The international credit rating company Capital Intelligence affirms the investment grade rating of NIGH’s bonds at “BBB-” with a stable outlook. It stated in its report that NIGH’s large asset base comprising of a significant portfolio of quoted equities, as well as its diversification across multiple sectors coupled with its sound operating performance at most subsidiaries and associated companies, are factors for supporting the stabilising of the rating. Furthermore, the rating reflects the strength of the Issuer, comfortable effective liquidity, lowered leverage on the back of its recent capital increase, and good reputation of the company.

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