United Real Estate Company Successfully Completes KD 80 Million Bond Issuance with Joint Lead Managers Kamco Invest and Gulf Bank

Mar 29 , 2023

Kuwait City by URC | Press Release

United Real Estate Company (URC), a leading real estate developer in Kuwait and the MENA region, as the Issuer, and Kamco Invest and Gulf Bank as the Joint Lead Managers, announced the success completion of the KD 80 million bond issuance, which is the largest issuance of bonds in KD in the real estate sector, which reflects investors' confidence in the company's credit strength.

The bonds mature in 2028 and were issued in two tranches, the first with a fixed rate at 7% per annum, payable on a quarterly basis, and the second tranche with a floating rate at 3% above the Central Bank of Kuwait (CBK) Discount Rate with a condition that the maximum limit of the floating rate doesn’t exceed 1% per annum above the fixed rate.

This issuance reflects and affirms investors’ confidence in URC’s strategy and vision for the coming years and further demonstrates the company’s solid financial position, which strengthens its position in the local market as a major player in the real estate development sector.

Mr. Mazen Hawwa, URC Vice-Chairman and Group Chief Executive Officer, said: “This issuance, in terms of its size, is a quantum leap for the company, as it comes at a time when URC is intensifying its business in the State of Kuwait and the region. We are taking well-studied and steady steps that are in line with the company's strategy, vision, and future growth plans.”

“We would like to thank the Kuwait Capital Markets Authority, our investors and our joint lead managers – Kamco Invest and Gulf Bank for their support.” Mr. Hawwa added.

Mr. Faisal Sarkhou, Chief Executive Officer of Kamco Invest, said: “Despite the challenges in the financial markets and the fact that it is the largest issuance denominated in Kuwaiti dinars in the real estate sector, we were able to complete it smoothly and easily and within a short period of time.”

“The strength of the financial position of URC, its strategy, and it’s track record in the debt markets played a major role in attracting investors. We appreciate the vital role played by the investment banking team and their continuous support for major deals, harnessing their expertise and benefiting from their experiences to provide the best possible results.”

Mr. Hani Al-Awadi, General Manager at Gulf Bank, said: “We are pleased to participate as a joint lead manager with Kamco Invest in the successful issuance of the largest bonds denominated in Kuwaiti dinars in the real estate sector, following our successful issuance of bonds denominated in Kuwaiti dinars for KIPCO group at a value of 165 million Kuwaiti dinars.

From his side, Mr. Santhosh Kumar, Group Chief Financial Officer at URC, said: “The company’s bonds met the targeted subscription which mirrors the investors' confidence in URC. These bonds are a major component of the company's capital structure, which reflects the company's operational efficiency and its constant endeavor to continue enjoying a robust financial and administrative position."

About URC

United Real Estate Company. K.S.C.P (URC) is one of the leading real estate developers in Kuwait and the MENA region, with consolidated assets of Approx. KD 610 million (US$ 1.96 Billion) as of 30 September 2022. Headquartered in Kuwait, URC was founded in 1973 and was listed on the Kuwait Stock Exchange in 1984.

URC primarily operates through a number of operating subsidiaries and investment arms across the MENA region. URC's core business is real estate development and operations and enjoys a diversified portfolio of assets that include retail complexes, hotels, residential properties, and high-rise office buildings.

URC’s operations extend to construction and contracting services, facility management, and project management through its several subsidiaries. URC's portfolio of assets is geographically spread throughout the MENA region and includes Marina World, Marina Hotel, and KIPCO Tower in Kuwait, Salalah Gardens Mall & Residences in Oman, Abdali Mall in Jordan, Raouche View 1090 in Lebanon, Hilton Cairo Heliopolis & Waldorf Astoria Hotels, and Aswar Residences in Egypt, and Assoufid development including a golf resort, five-star hotel, and premium residences in Morocco.

URC is the real estate arm of its majority shareholder, Kuwait Projects Company – Holding (KIPCO Group), a holding company that focuses on investments in the Middle East and North Africa. It’s strategy of acquiring, building, scaling and selling companies in the MENA region has worked successfully for over 30 years. KIPCO’s main business sectors are financial services, media, real estate, and industry. KIPCO’s financial service interests include holdings in commercial banks, insurance companies, asset management, and investment banking.

Contact Info

Salem Al Khulaqi

Communications Manager – Sales & Marketing
United Real Estate Company

T (+965) 2295 3671

F (+965) 2244 1003