GIC to stage bond issue

24 May 2002

Kuwait-based Gulf Investment Corporation (GIC) has awarded a mandate to Deutsche Bankand Morgan Stanley Dean Witterto stage a $200 million-250 million bond issue.

'The floating-rate facility will have maturity of five years,' says a GIC official. 'It will be used to part-finance the bank's expansion activities in the GCC and for general purpose funding.'

The proposed bond is part of GIC's plans to raise medium-term funds from the market to help underpin its new strategy following its divestment of Gulf International Bank in mid 2001 (MEED 19:4:02).

The new strategy, based on recommendations from McKinsey & Company, will entail increasing direct investment in new and existing projects and companies, particularly in the GCC.

GIC has been rated BBB+ and Baa2 respectively by US-based rating agencies Standard & Poor's (S&P) and Moody's Investors Service.

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