Kuwait's Global provides bondholders with "security"

KUWAIT Nov 12 (Reuters) - Kuwait's Global Investment House (GLOB.KW) said it would provide its bondholders with security, and has no intention to extend the maturity of three of its outstanding bonds, the first of which matures in December.

"The company plans to settle the bonds as they mature in 2009, 2012 and 2013. Therefore, no extension was sought to the bonds maturity," Global said in a statement on Thursday.

The three bonds are worth 115 million dinars ($403.1 million), it said.

Global, which defaulted on most of its debt earlier this year, is one of the largest investment companies in the Gulf Arab state facing problems amid tight credit conditions.

The bank began talks to reschedule its debt in December, appointing HSBC (HSBA.L) as an adviser to hold talks with its lenders.

"Global as the issuer of three bonds, offered to the bondholders security on the same terms and basis as is being proposed to be offered to the banks and financial institutions currently in discussions with the Company for restructuring of the debt," the statement said.

Most of the bondholders have agreed on the security provided by the firm, Global said, without specifying the type of security it provided to the investors.

The troubles of Global and other investment firms, including major Islamic firm Investment Dar TIDK.KW, led the government of the world's fourth-largest oil exporter to approve a rescue package worth 1.5 billion dinars earlier this year.

(Reporting by Eman Goma)