Kuwait’s Al Mazaya Restructures Debt Into KD12m Islamic Facility

Kuwait-based real estate developer Al Mazaya Holding has restructured part of its debt into a six-year KD12 million ($42.6 million) Islamic facility extended by a bank consortium, the company said in a bourse statement on Tuesday.

The restructuring would allow Al Mazaya to reduce its short-term loans by 39 per cent, while long term financing would increase by seven per cent, the statement said, without giving precise amounts.

As of December, Mazaya had KD130.9 million worth of liabilities, with more than two-thirds of that amount classified as current on its balance sheet.

The firm said 60 per cent of the new Islamic facility would be paid on a quarterly basis beginning after a one-year period, with the remaining 40 per cent to be paid at maturity.

As a result of the restructuring, 73 per cent of all company debt facilities would now be Islamic, the statement said.

Setup in 1998, the firm provides a variety of real estate management and investment services and is listed on the Kuwaiti and Dubai bourses.