KIPCO, Kuwait’s largest investment company by assets, repaid the bond — its first issue under a $2 billion program — which matured on April 12, a statement from the company said.
“As a result of our prudent funding policies that refinance our maturing debt well in advance, KIPCO has ample liquidity to meet its current requirements,” Pinak Maitra, group chief financial officer, said in the statement.
The firm’s last issue under its Euro medium term notes (EMTN) program was a 10-year $500 million bond in July last year at 9.5 percent.
Although one of the few corporate issuers from the GCC region, as an investment company, KIPCO was hit hard by the global financial crisis.
Moody’s placed the company for a potential downgrade.
“The review will focus on the cash generation capacity of KIPCO’s investment holdings, an assessment of the liquidity strength and refinancing requirements in addition to an evaluation of KIPCO’s core subsidiaries, namely those of United Gulf Bank (UGB), Burgan Bank,” a Moody’s note said.
Burgan Bank is KIPCO’s commercial banking arm and the firm is a 90 percent shareholder in United Gulf Bank, according to Thomson Reuters data.
Moody’s downgraded KIPCO in June last year. Its review will affect $1 billion of rated debt, the note said.
KIPCO’s portfolio assets total around $3.9 billion as at Dec 31 2010, Moody’s said.
