This transaction also represents the first and only international sukuk exchangeable into shares of a Kuwaiti company.
The sukuk was priced on May 29, following a seven day roadshow that allowed IIG to meet with over 40 investors across the GCC, Europe and Asia. The investor response was very strong, with 65 accounts putting orders for a total aggregate demand exceeding US$ 1 billion.
The strong demand has allowed IIG to increase the transaction size from the planned US$ 150 million to US$ 200 million and price the issue at the tight end of the initial price guidance. The profit distribution has been set at 6.75% per annum, equivalent to mid-swaps plus 150bp, and the conversion premium at 45% over the average share price during the marketing period.
The final distribution was broad, meeting IIG’s stated objective to diversify its investor base and forge new relationships with internationals partners. Half of the sukuk was allocated to UK investors, with another quarter distributed to the rest of Europe and the Middle East, and the remaining primarily to Asia.
Sami al Bader, Chairman and Managing Director of IIG stated:
“The success of this transaction reflects the trust that a large number of sophisticated international investors have put in our group and their confidence in our ability to fulfil our strategy and vision. IIG has now available new funds that will be applied to further accelerate the expansion of our group and generate profit for our shareholders”.
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