Kuwait Petroleum Corporation said on Tuesday it had signed an agreement for a 1.5 billion dinar ($4.89 billion) syndicated loan led by the National Bank of Kuwait NBK and Kuwait Finance House KFH.

The deal marks the largest-ever syndicated loan denominated in Kuwaiti dinars, KPC said.

The loan is split into two main tranches, a conventional portion of 825 million dinars and an Islamic tranche of 675 million dinars, KPC said in a statement.

KPC is working on a strategy that aims to boost its oil output to 4 million barrels per day by 2035. Kuwait produced 2.55 million bpd in October, according to OPEC’s November oil market report.

The loan will help fund the strategy and is part of the company’s efforts to diversify its funding sources, KPC CEO Sheikh Nawaf Saud Al-Sabah said in the statement.

Under the agreement, NBK will initially provide 330 million dinars to KPC with an option for another 165 million dinars, under the conventional portion, which also includes funds from Al Ahli Bank of Kuwait ABK, Burgan Bank BURG, Commercial Bank of Kuwait CBK and Gulf Bank GBK.

KFH will provide an initial 270 million dinars with an option for an additional 135 million dinars under the Islamic tranche, which also includes Boubyan Bank BOUBYAN, Kuwait International Bank KIB and Warba Bank WARBABANK.

KPC is also seeking to raise funds by leasing out and then leasing back its crude oil pipelines, which would mirror deals struck by several of its neighbours that raised billions of dollars.
Source: Reuters