International law firm Clifford Chance has advised the Joint Lead Managers on the establishment of a USD2 billion trust certificate programme by Kuwait Projects Company (Holding) K.S.C.P. (KIPCO) and the debut issuance of dual sukuk valued at KD 66,050,000 and KD 37,050,000 (totaling USD335.8 million) under the same programme.
Clifford Chance’s team comprised partner and global head of Islamic finance, Qudeer Latif (Dubai, pictured), partner and head of Middle East capital markets, Stuart Ure (Dubai), Shauaib Mirza (consultant, Dubai), Nader Koudsi (associate, Dubai) and Saby Mahmud (trainee, Dubai).
KFH Capital was sole structuring agent, KFH Capital and Kamco Invest were Global Coordinators and along with Warba Bank were Joint Lead Managers.
The sukuk trust certificates were issued by Kuwait Projects Company Sukuk Limited, an exempted company with limited liability incorporated in the Cayman Islands, with KIPCO as the obligor. This marks the inaugural issuance under KIPCO’s USD 2 billion Trust Certificate Issuance Program.
Notably, this represents the first sukuk issuance by a non-financial institution corporate entity in Kuwait, and also marks KIPCO’s debut entry into the sukuk market.
KIPCO, a holding company based in Kuwait, holds controlling stakes in various private and publicly listed operating companies across the MENA region, spanning financial services (commercial and investment banking and asset management), energy, media, real estate, manufacturing, and logistics sectors.
The 6-year fixed rate sukuk was priced with a 6.50% profit rate, while the 6-year floating rate sukuk was priced with a Central Bank of Kuwait Discount Rate plus 3.00% profit rate. The proceeds will be used for general corporate purposes.
The certificates are Sukuk of Murabaha and Wakala, denominated in Kuwaiti Dinars and approved by the Sharia Advisor. The certificates will be listed on the International Securities Market of the London Stock Exchange. Clifford Chance’s guidance on this significant transaction further reinforces its reputation as a leading legal advisor in the global financial market.