Kuwait Petroleum Corporation announced on Tuesday that it had signed a deal worth 1.5 billion dinar ($4.89 billion); therefore, the syndicated loan was headed by National Bank of Kuwait and Kuwait Finance House.
KPC had reported that the agreement would result in the biggest-ever syndicated loan denominated in Kuwaiti dinars.
In a statement, KPC has also stated that the loan is divided into two major tranches: a conventional one of 825 million dinars and an Islamic tranche of 675 million dinars.
Meanwhile, the KPC is engaged in a plan, which is projected to enhance its oil production to 4 million barrels per day by 2035. Kuwait was able to produce 2.55 million bpd in October, as per the November market report released by OPEC.
KPC CEO Nawaf Saud Al Sabah, in a statement, reported that the loan will assist in funding the strategy, which is part of the efforts by the company to diversify its sources of funds.
According to the arrangement, NBK will first contribute 330 million dinars to KPC, with the possibility of another 165 million dinars in the conventional portion, which also consists of funds of the Al Ahli Bank of Kuwait, Burgan Bank, Commercial Bank of Kuwait, and Gulf Bank.
KFH will offer an initial 270 million dinars plus a possibility of one more 135 million dinars within the Islamic tranche, comprising Boubyan Bank, Kuwait International Bank, and Warba Bank.
KPC is also trying to raise funds by leasing out and leasing back its crude oil pipelines; this would be similar to the deals that were struck by some of its neighbors that have made billions of dollars.
