Asico Group Approaches Completion of Debt Restructuring with Creditor Banks

Asico Group has completed a debt restructuring and financing obligations agreement with two local creditor banks, raising the proportion of completed settlements to approximately 80% of the group’s total settlements with its creditor banks. This step reflects the continuous progress in implementing the financial restructuring program approved by the Board of Directors and underscores the group’s proximity to completing 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 debt amounting to approximately KWD 56.15 million is expected to significantly enhance the company’s financial position. The transaction is also anticipated to have a positive impact of approximately KWD 23.52 million on the income statement, alongside a reduction in total balance sheet liabilities by about KWD 32.67 million. The remaining balance of KWD 23.48 million will be rescheduled according to a repayment 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 of Directors, 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 gratitude and appreciation to the local banks for their steadfast 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 reaffirms the group’s commitment to a disciplined and responsible approach, and a clear vision aimed at strengthening its financial resilience.

Commenting on the development, Emad Al-Eissa, Chairman of the Board of Directors of Asico Group, said: “Completing these agreements with two local banks marks a pivotal step in the group’s financial restructuring journey, following our success in settling approximately 80% of our creditor banks. This confirms the effectiveness of the strategy adopted by the Board of Directors since the launch of the program. From the outset, we have been committed to adopting a balanced approach that safeguards the rights of all parties and supports the sustainability of the group’s operations. Today, we are nearing the completion of this path and transitioning Asico into a phase focused on efficiency, profitability, and maximizing value for shareholders and all stakeholders. We appreciate the confidence and support of our banking partners, which have been instrumental in achieving this progress.”

According to the company’s statement, Asico looks confidently toward the future, amid Kuwait’s rapid and sustained developmental boom, and the abundance of major housing, urban, and infrastructure projects in its future plans. The statement highlighted the group’s extensive experience, integrated operational capabilities, and strong position in the building materials and construction sector, making it well-equipped to play an active role in supporting these projects and contributing to the achievement of Kuwait Vision 2035 targets.