By Christine Van Dusen
Atlanta, Feb. 13 – Kuwait’s Equate Petrochemical Co. KSCC priced a downsized $500 million issue of seven-year Islamic bonds at par to yield 3.944%, or mid-swaps plus 175 basis points, on Monday, a market source said.
The notes were initially talked at $750 million in size and with a yield in the mid-swaps plus 210 bps area.
Citigroup, HSBC, JPMorgan, KFH Capital and NBK were the global coordinators and – with Mizuho, MUFG, National Bank of Abu Dhabi and SMBC Nikko – joint bookrunners for the deal.
In October the issuer priced $2.25 billion of senior notes in two tranches, with $1 billion 3% notes due 2022 pricing at a 195 bps over mid-swaps. A $1.25 billion tranche of 4¼% notes due 2026 priced at mid-swaps plus 270 bps.
Equate is 85% owned by Petrochemical Industries Co. and Dow Chemical and produces essential chemical compounds as the largest petrochemical complex in Kuwait.
| Issuer: | Equate Petrochemical Co. KSCC
|
| Amount: | $500 million
|
| Maturity: | Feb. 21, 2024
|
| Description: | Islamic bonds
|
| Bookrunners: | Citigroup, HSBC, JPMorgan, KFH Capital, NBK, Mizuho, MUFG, National Bank of Abu Dhabi, SMBC Nikko
|
| Coupon: | 3.944%
|
| Price: | Par
|
| Yield: | 3.944%
|
| Spread: | 175 bps over mid-swaps
|
| Trade date: | Feb. 13
|
| Settlement date: | Feb. 21
|
| Distribution: | Regulation S
|
| Price talk: | Mid-swaps plus 210 bps area
|
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