08 October 2019
State oil operator Kuwait Petroleum Corporation (KPC) has signed an agreement with a group of local banks for a loan of 300 million Kuwaiti dinars ($990 million) to fund projects planned by its affiliated companies, a newspaper said on Tuesday.

KPC and a number of conventional and Islamic banks signed the deal last week for the loan which will be arranged by NBK Capital, the investment arm of the National Bank of Kuwait, the Arabic language daily Alseyassah said, citing KPC sources.

Under the agreement, conventional banks will provide 180 million Kuwaiti dinars ($594 million), an equivalent 60 percent of the loan while Islamic banks will extend the rest.

"KPC will receive the loan next week and loan terms range between three and five years...the loan is within KPC's strategy to borrow a maximum 70 percent of project value to avoid liquidating its investment portfolios," the paper said.

It noted KPC borrowed nearly 70 percent of the project value to fund the Clean Fuel Project (CFP), which cost nearly 4.6 billion Kuwaiti dinars ($15 billion).

(Writing by Nadim Kawach; Editing by Anoop Menon)

(anoop.menon@refinitiv.com)

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