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Al Mazaya Holding Company implements a well-firmed strategy aimed

Saqabi: Al Mazaya Holding Company implements a well-firmed strategy aimed at enriching its financial solvency, reducing financing expenses, and organising cash flow

• A decrease to the value of 6 million dinars in the company’s short-term liabilities to banks.

• A rate rise of 142% in the conversion of the company’s debts from the traditional system to the Islamic.

• A contract foliate worth 14.7 % million dinars, signed with one of the Islamic banks to reschedule debts from short-to long-term for a period of 5 years.

• A Public Auction for the sale of the company’s share of the Club Holding Company, amounting to 14.3%

Al Mazaya Holding Company announced a number of vigorous steps taken recently to enrich its financial solvency, reduce its funding expenses, and organise the financing cash flow, according to Abrahim Al Saqabi, the Acting Chief Executive of the company.

In this regard, Al Saqabi said that the current strategy of the company is aimed at entering into new projects, which requires the provision of the necessary liquidity for the implementation of these projects, and entering into partnerships with strategic investors, together with the expansion into new markets in order to spread risks on the one hand, introduce new products compatible with the current developments, and yield returns for the company on the other.

He added that Al Mazaya has been able to accomplish a number of deals that help achieve its strategy in this regard, including the signing of a contract foliate with one of the Islamic banks worth 14.7 million dinars for 5 years, to be repaid over twenty quarterly upward boosts, which has resulted in lower short-term liabilities to the value of 6 million dinars, a 17% decrease in the cost of funding, and the conversion of the company loans to long-term liabilities as obligations to banks.

Al Saqabi also said that the step has not affected the total liabilities of the company. The rates of the company’s loans to banks reached by 54% for traditional banks and 46 % for Islamic, compared to the previous proportions reaching 81% for traditional loans and 19% for Islamic banks, an increase of 142% from the traditional system to the Islamic, as part of the company’s policy to convert the current financing system from traditional to Islamic, especially after the Islamic finance system proved its ability to withstand the Global Financial Crisis, together with its flexibility in the development of multiple financing methods and instruments.

Commenting on the other steps carried out by the company within its strategy, Al Saqabi said that Al Mazaya has indulged in the sale of its shares by 14.3 % in the Club Holding Company listed in the Kuwait Stock Exchange. The sale of the shares was performed through an auction in accordance with the Kuwait Stock Exchange procedures, which will bring further financial liquidity needed in order to enter new projects. As for Al Mazaya’s exit deals, they will be listed within the financial data of the company in December 31, 2013.

The Saqabi went on to say that the Al Mazaya continues to implement its ambitious plans and smart objectives according to a strict timetable supported by specific success factors, noting at the same time that Al Mazaya takes great care to take into account the interest of the company’s shareholders, investors and customers.

In parallel, he said that the company is currently working on a study of restructuring its administrative regulations and internal systems in cooperation with foreign companies and consulting firms of competent jurisdiction. This follows after the successful completion of a workshop entitled ‘Rules of Governance for Companies in accordance with the new Regulations for the Financial Markets’, that had been held by the company’s management office Albazie & Co. – legal Accountants – to inform all leaders and members of the Board of Directors and executives on the latest developments in the capital markets and how to apply the system of governance for companies of all kinds, including the principles of transparency and disclosure.

The Saqabi concluded his statement saying that Al Mazaya has a lot to offer for shareholders, investors and markets, and with the help of God the company is continuing on the right track to achieve the desired results.