KIB signs Murabaha deal with EQUATE
Transaction valued at up to US $150 mn
KUWAIT CITY, June 27: Kuwait International Bank (KIB) announced signing of a bilateral Murabaha financing agreement with EQUATE Petrochemical Company. The transaction, valued at up to US $150 million for a tenor of 3 years, will be used to partially refinance an existing facility previously extended by a consortium of banks for business expansion.
Raed Bukhamseen, Vice-Chairman and CEO of KIB, complimented both KIB and EQUATE on the successful closing of this financing and said: “We are delighted to have structured and arranged this Islamic facility for EQUATE, a major global player in the petrochemical sector. We look forward to continue supporting the company’s growth, which is underpinned by its strong business model, management team and shareholders. This transaction supports the diversification of the Bank’s financing portfolio.” Bukhamseen added: “This transaction also underscores KIB capability of leading, arranging and accommodating large ticket transactions on a bilateral basis which has now become easier following the successful closing of our perpetual Sukuk issuance last year, which further strengthened the Bank’s capital ratios.”
Commenting on the successful closing of this transaction, Mohamed Khadiri, Acting General Manager of International Banking & Large Corporate Dept said: “This is a significant transaction for KIB, which demonstrates our business focused culture, quick turnaround and collaborative approach with our customers. The new facility is well structured to suit the liquidity requirements of EQUATE and clearly enhances our relationship.” Khadiri added: “We are extremely proud to be a part of this milestone in EQUATE’s financing agenda and I commend the hard work, effective collaboration and dedication that KIB and EQUATE teams have exhibited in the past couple of weeks into making this transaction come to fruition. We are very pleased to have EQUATE as one of our Large Corporate customers and this is only the beginning of a long standing and mutually beneficial partnership. This deal adds up to KIB’s outstanding achievements and strong track record in providing custom made solutions, leading products and services across Sharia compliant financing and financial advisory to the corporate sector.”