Kuwait signs $6-bln ECA loan for CFP

Kuwait National Petroleum Company (KNPC) has signed a USD 6.25-billion corporate loan package backed by export credit agencies (ECAs) for the country’s Clean Fuel Project.

The agreement was signed with seven ECAs, including Korea Trade Insurance Corporation, The Export-Import Bank of Korea, SACE, Japan Bank for International Cooperation, Nippon Export and Investment Insurance, Atradius Dutch State Business and UK Export Finance.

The National Bank of Kuwait acted as financial adviser to the deal, which was announced on Wednesday.

“We are very delighted to conclude this milestone for Kuwait’s oil sector and KNPC,” company CEO Mohammad Ghazi Al Mutairi said.

“This is the first time that KNPC has opted for financing from the international market. Furthermore, this transaction marks the largest ECA borrowing in Kuwait. We would like to thank our partners as well as the Initial Mandated Lead Arrangers for a successful partnership between Kuwait and participating countries.”

The USD 12-billion Clean Fuel Project will upgrade and expand KNPC’s Mina Al Ahmadi and Mina Abdullah refineries, transforming them into an integrated refining complex able to meet international market requirements for low-sulphur, Euro-quality fuels. The project will repurpose facilities from the Shuaiba refinery, which was retired according to plan on March 30, 2017.