ASICO Group Approaches Completion of Debt Restructuring Plan

ASICO Group announced the completion of a debt restructuring and settlement agreement with local commercial banks, its creditors, raising the proportion of completed settlements to approximately 80% of its total obligations with lending banks. This step reflects the continuous progress in implementing the financial restructuring program approved by the Board of Directors and confirms that the Group is approaching the final stages of this strategic initiative, thereby strengthening its financial position and laying a solid foundation for future growth.

The settlement and restructuring of debts amounting to approximately KWD 56.15 million is expected to significantly enhance the Company’s financial position. The transaction is also anticipated to generate positive impacts of approximately KWD 23.52 million in the income statement, alongside a reduction in total liabilities on the balance sheet by approximately KWD 32.67 million. The remaining balance of KWD 23.48 million will be rescheduled for repayment according to a mechanism starting in 2026 and ending in 2031, in line with the approved final terms.

This achievement caps intensive efforts led by the Chairman and Board members, in collaboration with the executive management and working teams, which successfully completed the Group’s operational restructuring program. The Group is now nearing the completion of its financial restructuring through constructive cooperation with local banks.

On this occasion, ASICO Group extends its sincere gratitude and appreciation to local banks for their firm confidence in the Group, and for the support and cooperation they provided, which played a pivotal role in the success of this important phase. This progress underscores the Group’s commitment to a disciplined and responsible approach, with a clear vision aimed at strengthening its financial resilience, supporting the sustainability and growth of its operations, and safeguarding the interests of shareholders, creditors, customers, employees, and all stakeholders.

Commenting on the development, Emad Abdullah Al-Enezi, Chairman of the Board of Directors of ASICO Group, stated: “The completion of these agreements with local commercial banks represents a pivotal step in the Group’s financial restructuring journey, following our success in settling approximately 80% of its obligations with lending banks. This confirms the effectiveness of the strategy adopted by the Board since the launch of the program. From the outset, we have been committed to adopting a balanced approach that protects the rights of all parties and supports the sustainability of the Group’s operations. Today, we are close to completing this path and transitioning ASICO Group to a phase focused on efficiency, profitability, and maximizing value for shareholders and all stakeholders. We highly value the confidence and support of our banking partners, which have played a fundamental role in achieving this progress.”

ASICO Group looks confidently to the future, amid the rapid developmental renaissance in the State of Kuwait and its future plans, which are rich in residential, urban, and major infrastructure projects. With extensive expertise, integrated operational capabilities, and a strong position in the building materials and construction industry sector, the Group is well-equipped to play an active role in supporting these projects and contributing to the achievement of the objectives of Kuwait Vision 2035.

ASICO Group will continue to develop its capabilities and expand its range of products and services, enhancing its competitiveness in local and regional markets, supporting its sustainable growth trajectory, and opening new horizons for growth and expansion in the coming phase.