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Markaz repays $100m upon maturity date.

Kuwait Financial Centre "Markaz" has repaid all of its $100 million bonds issued in July 2007 on the specified maturity date 5 July 2012.

Markaz issued these five-year bonds in 2007 with a Floating Rate Notes of 110 basis points over LIBOR paid quarterly. With this issue, Markaz was the first non-UAE company to list a conventional bond on Dubai International Financial Exchange (DIFX).

Manaf Alhajeri, Markaz Chief Executive Officer said, "Markaz's ability to timely honour its financial obligations despite the credit complications in the regional and global investment climate is a testament of the company's strong financial position. This is due to the company's compliance with prudent fiscal policies that maintained sufficient liquidity levels yielding the proper balance of asset and liability maturities. In addition, Markaz's dynamic and well-researched investment strategy has enabled the company to pinpoint rewarding investment opportunities. All of that plus the sound governance system adopted by Markaz have enabled the company to sustain a credit rating of BBB.

"Markaz is keen on maintaining a strong relation based on compliance and trust with the capital market as it is one of the main financing sources for the company along with international and local banks. The strength of this relation materialized by investors' interest in our 2007 USD bonds as the issue was 27 per cent oversubscribed, with about 70 per cent being allocated to investors in the region and 30 per cent to investors elsewhere. The same applies for Markaz KWD 22 million bonds which were issued in 2011 with a subscription coverage reaching 145 per cent"

Ali Khalil, Markaz Chief Operation Officer said, "Despite the harsh conditions in the investment and financial environment since the 2008 crisis, Markaz has been able to sustain sufficient liquidity levels by lowering short-term debts during 2009 from KWD 23 million to KWD 4 million and then repaying it all by the end of 2011. By the end of 2011 and the Q1 of 2012, Markaz net-debt to equity ratio was at 36.4 per cent."

2012 CPI Financial. All rights reserved.

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Publication:CPI Financial
Date:Jul 4, 2012
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