Kuwait in $1-billion bank deal for KNP's clean fuel project - Zawya Projects

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Kuwait in $1-billion bank deal for KNP's clean fuel project

Kuwait in $1-billion bank deal for KNP's clean fuel project Photo Credit:REUTERS
Japanese and HK banks agree to finance the project
04 May 2017

State-owned refiner Kuwait National Petroleum Company (KNPC) has signed an agreement with a group of Japanese and Hong Kong banks to borrow $1 billion to fund its clean fuel project (CFP), a Kuwaiti newspaper said on Thursday.

The loan is within the second tranche of financing deals with a number of local and international banks for the multi-billion-dollar project, Arabic daily Al-Rai said, quoting Shukri Al-Mahroos, KNPC's Deputy CEO for Planning and Finance.

The syndication includes $500 million from Nippon Investment and Insurance (MEXI), $200 million from Sumitomo Mitsui Banking Corp, $125 million from Bank of Tokyo Mitsubishi, $100 million from Mizuho Bank, and $75 million from HSBC, Hong Kong.

Mahroos said KNPC has reached the final stage of negotiations with other banks from South Korea, Italy, Britain and the Netherlands for a $5.24 billion loan.

"We expect the negotiations for this loan to end late this month," he said, adding that KNPC had signed a $1.2 billion dinar ($3.9 billion) loan agreement with a number of banks in April 2016.

The CFP involves upgrading the Gulf country’s two main oil refineries -- Mina Abdullah and Mina Al Ahmadi -- and is part of a massive programme to develop the oil sector in the Gulf OPEC country.

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