PWC stages $100m bond issue

03 October 2003
The local Public Warehousing Company (PWC) on 30 September issued a $100 million bond, lead managed and underwritten by Global Investment House, also local.

The instrument is unusually structured: it is made up of two equal tranches, one denominated in US dollars paying a bi-annual coupon of 4 per cent; the other denominated in Kuwaiti dinars and carrying a 5 per cent coupon. The five-year bonds will be drawn down in four stages of 25 per cent every six months. Cyprus-based rating agency Capital Intelligence has assigned the issue an A- rating.

The funds raised will be used to restructure existing debt and to finance a major expansion programme at PWC, driven by a rapid increase in demand for warehouse space and inventory management services. In June, the company won a two-year contract worth an estimated $22.4 million to supply food and non-food products to the US military in Kuwait, Qatar and Iraq (MEED 6:6:03).

A MEED Subscription...

Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.

Get Notifications