KNPC man­dates banks for club loan: Sources

Kuwait Times - - LOCAL -

DUBAI: Kuwait Na­tional Petroleum Co (KNPC) has se­lected 10 in­ter­na­tional banks to pro­vide a loan fa­cil­ity of more than $4 bil­lion to back its Clean Fu­els project, bank­ing sources said. The loan, which has guar­an­tees from var­i­ous coun­tries’ ex­port credit agen­cies, is ex­pected to in­clude the par­tic­i­pa­tion of BBVA, BNP Paribas, Bank of Toky­oMit­subishi UFJ, Credit Agri­cole CIB, HSBC, Mizuho, Natixis, San­tander Group, So­ci­ete Gen­erale and Stan­dard Char­tered, the sources said.

The par­tic­i­pa­tion of San­tander and BBVA is highly likely, but must still be made of­fi­cial, the sources said. KNPC was not im­me­di­ately avail­able to com­ment. The debt fa­cil­ity is a club loan, which means it will not be syndicated to other banks, said the sources. NBK Cap­i­tal has been work­ing with the Kuwaiti com­pany as fi­nan­cial ad­viser, while HSBC has co­or­di­nated the loan.

The state-owned re­finer ap­pointed the banks last week and com­ple­tion of the fi­nanc­ing is ex­pected in the first quar­ter of 2017. The South Korean, Dutch, Bri­tish and Ital­ian ex­port credit agen­cies will pro­vide back­ing to the fa­cil­ity, KNPC’s chief ex­ec­u­tive Mo­ham­mad Ghazi al-Mu­tairi told Reuters in Oc­to­ber.

The Clean Fu­els project will ex­pand and up­grade two of Kuwait’s largest re­finer­ies to pro­duce diesel and kerosene for ex­port. The project re­ceived a first tranche of fi­nanc­ing in April this year, when it ob­tained a 1.2 bil­lion di­nar ($3.9 bil­lion) loan led by Na­tional Bank of Kuwait and Kuwait Fi­nance House. A group of 11 banks, in­clud­ing Is­lamic len­ders, took part in that loan. —

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