PRESS AND INFORMATION DETAILS

KAPP concludes offering of Azzour

KAPP SUCCESSFULLY CONCLUDES PUBLIC OFFERING OF SHAMAL AZZOUR AL-OULA KSCP, KUWAIT'S FIRST PPP COMPANY

- The Kuwiat Authority for Partnership Project's ("KAPP") Public offering resulted in a 127% subscription rate.

- Shamal Azzour Al-Oula Power and Water Company K.S.C.P is the owner and operator of Kuwait's first independent power and water plant established under the IWPP Law and the country's first PPP company to be offered for public subscription.

- Power and water produced by the company are entirely supplied to the national power and water grid operated by the Kuwait Ministry of Electricity and Water (MEW) under a 40-year long-term Energy Conversion and Water Purchases Agreement (ECWPA).

- The transaction is governed by Kuwait's Public-Private Partnership (PPP) legal framework, which requires the State, to offer 50% of the total ownership of PPP projects to Kuwaiti citizens through a public offering.

- All remaining 50% will continue to be held by current shareholders (40% by the strategic investor, 5% by the Kuwait Investment Authority, and 5% by the Public Institution for Social Security)

- KAPP's transaction advisor on the public offering was a consortium comprised of Watani Investments. Co. ("NBK Capital") as the lead advisor, Kuwait Clearing Company as the technical advisor, International Counsel Bureau as the legal advisor and Bensirri as the media advisor.

Kuwait city, November 30, 2019: The Kuwait Authority for Partnership Projects (KAPP) announced today that it has successfully concluded the public offering of its stake in Shamal Azzour Al-Oula K.S.C.P., the operator of the Az-Zour North One Power and Water Plant and the country's first Public-Private-Partnership company.

The Offering, which ran from October 1 to November 29, was equal to 50% of Shamal Azzour Al-Oula shares.

The remaining 50% will continue to be held by current shareholders (40% by Azour North One Holding Company K.S.C.C., the strategic investor comprised of a consortium of ENGIE (formerly GDFSUEZ), Sumitomo Corporation, A.H. Al Sagar & Brothers; 5% by Kuwait Investment Authority; and 5% by the Public Institution for Social Security).

Offering Highlights:

1. Subscription rate: 127%
2. Total individual investors: 127,000
3. Stake: 550 million shares, equal to 50% of Shamal Azzour Al-Oula power and Water comply  K.S.C.P. (equivalent to 100% of KAPP's stake in the company's capital)
4. Subscription Start Date: October 1, 2019
5. Subscription End Date: November 29, 2019
6. Eligibility: Kuwaiti nationals as of September 15, 2019

The public offering is mandated by the IWPP and PPP Laws, which form an integral part of an overarching governmental effort to include citizens in the ownership of megaprojectes that are offered to private sector institution investors. In addition to providing attractive investment opportunities to citizens, PPP projects empower the private sector to take the lead in growing the national non-oil economy.

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