02 October 2003- United Gulf Bank issues US$60 million Five Year Floating Rate Bond

United Gulf Bank B.S.C., the investment banking arm and subsidiary of Kuwait Projects Company (Holding) KSC, Kuwait (KIPCO), successfully closed its first bond issue on 29th September 2003. The US$ 60 million five-year floating rate bonds, carry a coupon of 1.00% above three months LIBOR for the first three years and, if extended by the bondholders, 1.25% per annum above three months LIBOR for the final two years. The issue was underwritten by Burgan Bank S.A.K., KIPCO Asset Management Company K.S.C.C. and Global Investment House K.S.C.C. The bonds were marketed exclusively in Kuwait and were very well received resulting in oversubscription.

Commenting on the issue, William Khouri, Chief Executive of UGB, said: "The terms of these BBB rated bonds reflect the Bank's solid performance and strong financial position as well as a growing interest in UGB by debt and equity investors". " The listing of the bonds on the Bahrain Stock Exchange", he continued, " will facilitate trading and contribute to the expanding capital market in the Kingdom."

UGB has total assets of around $950 million, supported by shareholders' funds of more than US$ 230 million. UGB registered net income of US$ 15.4 million in the first half of 2003 as against US$ 9.6 million earned in 12 months in 2002. UGB's main subsidiaries are Tunis International Bank, Tunisia; KIPCO Asset Management Company, Kuwait; UGB Securities Co., Bahrain; and Algeria Gulf Bank (under formation) Algeria. UGB also has equity interests of 44% in Jordan Kuwait Bank, Jordan; 34% in United Real Estate Company, Kuwait; and 49% in United Industries Company, Kuwait.

UGB's activities consist of private equity and fund investments, quoted equities, asset management, corporate finance, real estate, treasury and selective commercial banking services.

For further information please contact United Gulf Bank on telephone +973 17533233 or email info@ugbbah.com.