NBK Capital Acted as Arranger and Joint Lead Manager in EQUATE Petrochemical B.V.’s debut US$ 2.25 billion dual-series bond offering

Kuwait: November 8, 2016

THIS ANNOUNCEMENT IS NOT BEING MADE IN AND COPIES OF IT MAY NOT BE DISTRIBUTED OR SENT INTO THE UNITED STATES, THE UNITED KINGDOM, CANADA, AUSTRALIA OR JAPAN.

THE SECURITIES REFERRED TO HEREIN MAY NOT BE SOLD IN THE UNITED STATES ABSENT REGISTRATION OR AN EXEMPTION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED. NEITHER EQUATE PETROCHEMICAL B.V., THE KUWAIT OLEFINS COMPANY K.S.C.C. NOR EQUATE PETROCHEMICAL K.S.C.C. INTEND TO REGISTER ANY OF THE SECURITIES IN THE UNITED STATES OR TO CONDUCT A PUBLIC OFFERING OF THE SECURITIES IN THE UNITED STATES.

THIS COMMUNICATION DOES NOT CONSTITUTE AN OFFER OF THE NOTES TO THE PUBLIC IN THE UNITED KINGDOM. NO PROSPECTUS HAS BEEN OR WILL BE APPROVED IN THE UNITED KINGDOM IN RESPECT OF THE SECURITIES. THIS COMMUNICATION IS BEING DISTRIBUTED TO AND IS DIRECTED ONLY AT (I) PERSONS WHO ARE OUTSIDE THE UNITED KINGDOM OR (II) PERSONS WHO ARE INVESTMENT PROFESSIONALS WITHIN THE MEANING OF ARTICLE 19(5) OF THE FINANCIAL SERVICES AND MARKETS ACT 2000 (FINANCIAL PROMOTION) ORDER 2005 (THE “ORDER”) AND (III) HIGH NET WORTH ENTITIES, AND OTHER PERSONS TO WHOM IT MAY LAWFULLY BE COMMUNICATED, FALLING WITHIN ARTICLE 49(2)(A) TO (D) OF THE ORDER (ALL SUCH PERSONS TOGETHER BEING REFERRED TO AS “RELEVANT PERSONS”). ANY INVESTMENT ACTIVITY TO WHICH THIS COMMUNICATION RELATES WILL ONLY BE AVAILABLE TO AND WILL ONLY BE ENGAGED WITH, RELEVANT PERSONS. ANY PERSON WHO IS NOT A RELEVANT PERSON SHOULD NOT ACT OR RELY ON THIS DOCUMENT OR ANY OF ITS CONTENTS.

FCA/ICMA STABILISATION

• 2x oversubscription with an order book above US$ 4.5bn
• Largest ever debt issuance and first Reg S/144A format issuance to be marketed in Kuwait
• The issuance received strong support from the local market with interest from both government and financial institutions
• First and only Kuwaiti-guaranteed quasi-sovereign issuance to be marketed in Kuwait and globally

Watani Investment Co. K.S.C.C. (“NBK Capital”) acted as Arranger and Joint Lead Manager in the establishment of a Global Medium Term Note programme by EQUATE Petrochemical B.V. (“EQUATE B.V.”), a wholly owned subsidiary of EQUATE Petrochemicals Co. K.S.C.C. (together with The Kuwait Olefins Company K.S.C.C. rated “Baa2” by Moody’s and “BBB+” by Standard and Poor’s) (altogether “EQUATE Group”) who successfully entered the international debt capital markets by issuing a total of US$ 2.25 billion in dual-series bonds. The dual-series issuance consisted of US$ 1.00 billion in Long 5-year bonds maturing in March 2022 as well as US$ 1.25 billion in 10-year bonds maturing in November 2026.

Citigroup, HSBC Bank plc, J.P. Morgan and NBK Capital acted as Arrangers. Banca IMI, Citigroup, HSBC Bank plc, J.P. Morgan, MUFG, NBK Capital, Mizuho Securities and SMBC Nikko acted as Joint Lead Managers. ICBC, ING and NBAD acted as Co-Managers.

The issuance was well received globally by a diversity of investors including fund managers, government institutions/pension funds, financial intuitions and insurance companies, with an over-subscription rate of 2 times and a global order book exceeding US$ 4.5 billion. The issuance proceeds will be used for general corporate purposes, including to refinance existing debt.

The issuance not only represents the largest debt issuance to be marketed locally in the history of Kuwait, but is also the first and only Kuwaiti-guaranteed quasi-sovereign debt capital markets issuance to be marketed in Kuwait and globally under the Reg S / 144A issuance format.

Mr. Mohamad Hussain, EQUATE Group’s Chief Executive Officer commented: “We are extremely proud of our debut deal and of bringing the first Kuwaiti-guaranteed quasi-sovereign issuance to the international markets. The strong investor reception is a true testament to the quality of EQUATE Group’s credit story and our international appeal.”

Mr. Faisal Al Hamad, NBK Capital’s Chief Executive Officer added: “We are very proud to have advised EQUATE Group on this exciting mandate. This issuance represents a landmark transaction that will serve as a vital benchmark which will notably pave the way for Kuwait’s much-anticipated first sovereign issuance.”

The dual-tranche bonds, were priced competitively with the Long 5-year tranche priced at 98.364% with a 3.000% coupon at a spread of 195 basis points over mid-swaps (3.338% yield). Meanwhile, the 10-year tranche was priced at 98.781% with a 4.250% coupon at 270 basis points over mid-swaps (4.402% yield).