Sunday 22 July 2012

Kuwait's NIG asks for $475 mln sukuk extension as maturity looms | Reuters

National Industries Group Holding (NIG), a Kuwaiti investment firm controlled by one of the country's biggest family conglomerates, has asked creditors for a four-year extension on a $475-million Islamic bond, or sukuk, maturing next month.

The request from NIG, part of the Kharafi Group, is the latest debt issue to surface in the Kuwaiti investment sector, which was hard hit by the 2008 global financial crisis.

Firms who borrowed cheap short-term cash in the boom years to fund an asset-buying spree, both locally and overseas, found they could not refinance the debt once borrowing costs rose. Offloading assets at deflated values in a stagnant private equity market has proven difficult.

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