National Bank of Kuwait (NBK), in cooperation with J.P Morgan Limited, has led a consortium of international, regional and Kuwaiti banks to arrange a syndicated loan of $1 billion for Kuwait Foreign Petroleum Exploration Company (KUFPEC), a wholly owned subsidiary of Kuwait Petroleum Company (KPC). The five-year term loan will be used for KUFPEC’s general corporate purposes and to finance its international expansion plans.
NBK and J.P Morgan Limited acted as joint coordinators and NBK was appointed as the Facility Agent. The consortium includes: NBK, J.P Morgan, The Bank of Tokyo-Mitsubishi UFJ, HSBC and The Royal Bank of Scotland as Initial Mandated Lead Arrangers, and Ahli United Bank B.S.C, Australia and New Zealand Banking Group, Barclays Bank PLC – Wholesale Bank Bahrain, Burgan Bank, CITI Bank N.A. – Kuwait, Commercial Bank of Kuwait, Doha Bank, Gulf Bank, Mizuho Bank LTD, NATIXIS, National Bank of Abu Dhabi– Kuwait Branch, Qatar National Bank, Samba Financial Group, Societe Generale, Sumitomo Mitsui banking Corporation Europe LTD, and Union National Bank as Bookrunners and the Mandated Lead Arrangers, and Scotiabank Europe PLC, Bank of Bahrain & Kuwait, and National Bank of Bahrain as Lead Arrangers.
Last year, NBK, in cooperation with J.P Morgan Limited, had also led a consortium of banks to arrange a KD 1 billion syndicated loan for KUFPEC. In 2008, NBK was also the Original Lender and Agent Bank for a five-year term loan facility of $320 million for KUFPEC.
Shaikha Al Bahar, NBK Deputy Group Chief Executive Officer, said: “This transaction reflects NBK’s leading position as the banking partner for Kuwait’s oil companies. NBK has always been at the forefront in supporting Kuwait’s oil sector. NBK’s relationship with KPC and its subsidiaries extends for almost four decades.”
“NBK’s leading role in this transaction reflects, once again, its strong reputation, professionalism and track-record in arranging and leading mega financing deals in Kuwait and the region”. Al Bahar added. “We are happy to cooperate with major international banks to support KUFPEC’s expansion plans.”
NBK is the largest financial institution in Kuwait.