Kuwait's Agility is mulling a bond issuance of up to $1 billion in 2019 to fund expansion and remains confident in an investment deal in part of embattled private equity player Abraaj, its CEO said.
The logistics and warehousing company, which plans to invest $1.6bn by 2020, is seeking to grow its industrial real estate and warehousing business across emerging markets to meet growing demand driven by e-commerce transactions, Tarek Sultan, told The National. It could raise finance from either syndicated bank loans or a dollar bond issuance and will make a decision based on market conditions and pricing.
"A good part of our investment program will be financed with banks but we consider the possibility of a bond for next year," Mr Sultan said. "We're open to going down the route of issuing bonds provided its more attractive than going through syndication."
Agility is expanding to diversify its revenue streams and reach its target of $800 million (Dh2.9bn) earnings before interest, taxes, depreciation and amortisation (ebitda) by 2020. Last year’s ebitda grew 17 per cent to 135m Kuwaiti dinars (Dh1.63bn). The Kuwaiti company has also teamed up with an investment firm in its bid to acquire part of Abraaj's business. Dubai-based Abraaj, which is undergoing a provisional liquidation in the Cayman Islands, is looking to sell part of its fund management business Abraaj Investment Management. Agility expressed an interest in the company in July.
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Negotiations over the deal are continuing at a "very slow" pace, Mr Tarek said, without revealing the name of the partner.
"Those talks are on a slow-burner, the discussions are still taking place," Mr Sultan said. "I wouldn’t describe them as being in advanced stages, there’s open levels of communications and we're still exploring ideas."
Agility remains "confident" that its business track-record in emerging markets makes for a "compelling argument" to limited partners in Abraaj's funds to choose the Kuwaiti company's bid.
Mr Sultan said the company expects to turn an annual profit in 2018 and that it would be "safe to assume" a growth in annual earnings next year up from 2018 as its logistics and infrastructure business continues to grow.
The company, which is listed in Kuwait and Dubai, is bullish on emerging markets in Africa, where it has invested heavily, as well as the Middle East South-East Asia.
"We're bullish on technology and how it intersects with emerging markets and small-and-medium enterprises," he said.
Agility earlier this week announced it will invest $100m in digital logistics website Shipa.com that allows small businesses and entrepreneurs to manage their freight and deliveries online.
"With the growth of e-commerce and the initiatives to approach the Middle East market, it is timely to come up with a one-stop shop for e-commerce providers to address the region as a whole," he said. "It's still early days for e-commerce in the Middle East and there is tremendous market potential."
Mr Sultan, who's company operates in more than 100 countries with 22,000 employees, expressed concern about the impact on global economic growth from rising trade tensions between the US and China, he said.
"We’re a global company so anything impacting global growth will impact us in some way shape or form," Mr Sultan said. "The trade dispute is somewhat concerning."
His perception is that the negotiations between the world's two top economies would be resolved in a "positive way," he said.
Mohammed bin Zayed Majlis
UAE currency: the story behind the money in your pockets
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
'The Ice Road'
Director: Jonathan Hensleigh
Stars: Liam Neeson, Amber Midthunder, Laurence Fishburne
2/5
Gothia Cup 2025
4,872 matches
1,942 teams
116 pitches
76 nations
26 UAE teams
15 Lebanese teams
2 Kuwaiti teams
A cheaper choice
Vanuatu: $130,000
Why on earth pick Vanuatu? Easy. The South Pacific country has no income tax, wealth tax, capital gains or inheritance tax. And in 2015, when it was hit by Cyclone Pam, it signed an agreement with the EU that gave it some serious passport power.
Cost: A minimum investment of $130,000 for a family of up to four, plus $25,000 in fees.
Criteria: Applicants must have a minimum net worth of $250,000. The process take six to eight weeks, after which the investor must travel to Vanuatu or Hong Kong to take the oath of allegiance. Citizenship and passport are normally provided on the same day.
Benefits: No tax, no restrictions on dual citizenship, no requirement to visit or reside to retain a passport. Visa-free access to 129 countries.
Small Victories: The True Story of Faith No More by Adrian Harte
Jawbone Press
The Bio
Favourite vegetable: “I really like the taste of the beetroot, the potatoes and the eggplant we are producing.”
Holiday destination: “I like Paris very much, it’s a city very close to my heart.”
Book: “Das Kapital, by Karl Marx. I am not a communist, but there are a lot of lessons for the capitalist system, if you let it get out of control, and humanity.”
Musician: “I like very much Fairuz, the Lebanese singer, and the other is Umm Kulthum. Fairuz is for listening to in the morning, Umm Kulthum for the night.”
Company%C2%A0profile
%3Cp%3E%3Cstrong%3ECompany%20name%3A%20%3C%2Fstrong%3EHayvn%3Cbr%3E%3Cstrong%3EStarted%3A%20%3C%2Fstrong%3E2018%3Cbr%3E%3Cstrong%3EFounders%3A%20%3C%2Fstrong%3EChristopher%20Flinos%2C%20Ahmed%20Ismail%3Cbr%3E%3Cstrong%3EBased%3A%20%3C%2Fstrong%3EAbu%20Dhabi%2C%20UAE%3Cbr%3E%3Cstrong%3ESector%3A%20%3C%2Fstrong%3Efinancial%3Cbr%3E%3Cstrong%3EInitial%20investment%3A%20%3C%2Fstrong%3Eundisclosed%3Cbr%3E%3Cstrong%3ESize%3A%3C%2Fstrong%3E%2044%20employees%3Cbr%3E%3Cstrong%3EInvestment%20stage%3A%20%3C%2Fstrong%3Eseries%20B%20in%20the%20second%20half%20of%202023%3Cbr%3E%3Cstrong%3EInvestors%3A%20%3C%2Fstrong%3EHilbert%20Capital%2C%20Red%20Acre%20Ventures%3C%2Fp%3E%0A
The specs
The specs: 2019 Audi Q8
Price, base: Dh315,000
Engine: 3.0-litre turbocharged V6
Gearbox: Eight-speed automatic
Power: 340hp @ 3,500rpm
Torque: 500Nm @ 2,250rpm
Fuel economy, combined: 6.7L / 100km
The specs: 2019 Cadillac XT4
Price, base: Dh145,000
Engine: 2.0-litre turbocharged in-line four-cylinder engine
Transmission: Nine-speed automatic
Power: 237hp @ 5,000rpm
Torque: 350Nm @ 1,500rpm
Fuel economy, combined: 8.7L / 100km
If you go
The flights
There are direct flights from Dubai to Sofia with FlyDubai (www.flydubai.com) and Wizz Air (www.wizzair.com), from Dh1,164 and Dh822 return including taxes, respectively.
The trip
Plovdiv is 150km from Sofia, with an hourly bus service taking around 2 hours and costing $16 (Dh58). The Rhodopes can be reached from Sofia in between 2-4hours.
The trip was organised by Bulguides (www.bulguides.com), which organises guided trips throughout Bulgaria. Guiding, accommodation, food and transfers from Plovdiv to the mountains and back costs around 170 USD for a four-day, three-night trip.
Day 1 results:
Open Men (bonus points in brackets)
New Zealand 125 (1) beat UAE 111 (3)
India 111 (4) beat Singapore 75 (0)
South Africa 66 (2) beat Sri Lanka 57 (2)
Australia 126 (4) beat Malaysia -16 (0)
Open Women
New Zealand 64 (2) beat South Africa 57 (2)
England 69 (3) beat UAE 63 (1)
Australia 124 (4) beat UAE 23 (0)
New Zealand 74 (2) beat England 55 (2)
UAE currency: the story behind the money in your pockets
Dr Afridi's warning signs of digital addiction
Spending an excessive amount of time on the phone.
Neglecting personal, social, or academic responsibilities.
Losing interest in other activities or hobbies that were once enjoyed.
Having withdrawal symptoms like feeling anxious, restless, or upset when the technology is not available.
Experiencing sleep disturbances or changes in sleep patterns.
What are the guidelines?
Under 18 months: Avoid screen time altogether, except for video chatting with family.
Aged 18-24 months: If screens are introduced, it should be high-quality content watched with a caregiver to help the child understand what they are seeing.
Aged 2-5 years: Limit to one-hour per day of high-quality programming, with co-viewing whenever possible.
Aged 6-12 years: Set consistent limits on screen time to ensure it does not interfere with sleep, physical activity, or social interactions.
Teenagers: Encourage a balanced approach – screens should not replace sleep, exercise, or face-to-face socialisation.
Source: American Paediatric Association