DUBAI- A group of six local and international banks has agreed to provide a $650 million 26-year loan to finance the construction and operation of Kuwait's Umm al-Hayman Company for Waste Water Treatment project, three of the lenders said in a joint statement.
The consortium of banks is led by Al Ahli Bank of Kuwait, Commercial Bank of Kuwait and KfW IPEX-Bank. It also includes DZ Bank, the Korea Development Bank and Siemens Bank.
Kuwait's Ministry of Public Works signed a public-private partnership with the project company last week to develop the plant, the statement from the lenders said.
Umm al-Hayman Company for Waste Water Treatment is 40% owned by its developers WTE Wassertechnik GmbH and Kuwait's International Financial Advisors, 10% by the Kuwait Investment Authority and 50% by Kuwait Authority for Partnership Projects (KAPP), the statement said.
KAPP aims to offer shares to the public through an initial public offering once the plant is operational, it said.
(Reporting by Yousef Saba; editing by Jason Neely) ((Yousef.Saba@thomsonreuters.com; +971562166204))