Kuala Lumpur, September 16, 2006: National Industries Company for Building Material (NICBM), a Kuwaiti closed shareholding company and listed on the Kuwait Stock Exchange held the launching of its first Islamic Sukuk issue in Kuala Lumpur . The road show is part of its series of roadshows involving London, Bahrain and Kuala Lumpur , which kicked off on 4 September 2006. NICBM, founded in 1960, specialises in manufacturing and marketing building material and infrastructure products in Kuwait and is a subsidiary of National Industries Group Holding (NIG), a holding Group that owns several industrial and financial companies in the Middle East, Europe and North Africa .
The Sukuk issue will have a term of five years with a possible listing on the Irish Stock Exchange. According to Dr. Saud Al Farhan, General Manager ¿ NICBM during the Kuala Lumpur Road Show, part of the proceeds from the Sukuk issue will be used for the construction of their Group's Headquarters.
Kuwait Finance House (KFH) is the Mandated Lead Manager and the Book Runner for the Sukuk Issue. Gulf International Bank (GIB), Liquidity Management Center ¿ Bahrain (LMC) and Standard Bank ¿ London will act as Joint Lead Managers. Standard Bank will also act as Joint Book Runner with KFH.
Sukuk, an Islamic investment certificate is different from a bond, whereby under a sukuk structure, the investors have a claim on the underlying assets rather than a contractual obligation as represented by a bond. "Sukuk is in great demand globally as more issuers opt to issue the papers to fund their projects. KFHMB is ready to issue Sukuk for issuers in Malaysia and in this region to capitalize on this growing demand and support the Malaysian Government's goal of making Malaysia the Islamic financial hub in the region. In doing so, we hope to complement the Malaysian financial industry and promotes two-way investments between Malaysia and the Gulf Cooperative Council Countries," said Mr. K Salman Younis, Managing Director of Kuwait Finance House ( Malaysia ) Berhad (KFHMB), the Malaysian subsidiary of Kuwait Finance House.