Kuwait's Kufpec eyes $750m loan deal

  • Share via facebook
  • Tweet this
  • Bookmark and Share
(Photo for illustrative purposes only)

(Photo for illustrative purposes only)

Kuwait Foreign Petroleum Exploration Company (Kufpec) has picked five banks to arrange a $750m, five-year loan to help fund its general business operations, three banking sources have told Reuters.

Kufpec has chosen Bank of Tokyo-Mitsubishi, HSBC Holdings, JP Morgan Chase, National Bank of Kuwait (NBK) and Royal Bank of Scotland to arrange the loan, the sources said, speaking on condition of anonymity. NBK and JP Morgan are coordinating.

Kufpec is owned by state oil firm Kuwait Petroleum Company and has an international focus.

A Kufpec spokesman was not immediately available for comment.

A period of marketing to other banks is expected to start shortly. Should the deal commence syndication in the next few days, it is expected to close by the end of the first quarter, one of the sources, a regional banker, said.

Kufpec has a $320m loan which matures in May. That facility was funded by ten banks led by Citigroup and NBK in 2008 and paid a margin of 100 basis points over the London interbank offered rate (Libor), according to Thomson Reuters data.

The new loan will not refinance this facility, which will be retired when it reaches maturity, a second banker, based in London, said.

In December, British oil major BP said Kufpec would acquire a 34.3 percent stake in the Yacheng gas field in the South China Sea for $308m in cash. The deal is expected to complete in the second half of 2013.

Kufpec, which is active in exploration, development and production of crude oil and natural gas in Africa, Middle East, Asia and Australia, has also been linked with taking over part of a huge oil block in South Sudan previously controlled by France's Total.

Related:
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Women edge into Gulf boardrooms as economies, societies shift

Women edge into Gulf boardrooms as economies, societies shift

Amina al-Rustamani, CEO of TECOM Investments, is leading the...

2
Dubai mulls rule change to lure more domiciled funds

Dubai mulls rule change to lure more domiciled funds

Proposed rules would create a new class of funds in the Dubai...

Gulf's rift over Qatar may slow investment, reforms

Gulf's rift over Qatar may slow investment, reforms

Analysts suggest dispute may not hurt immediately but could impact...

Most Discussed
  • 54
    Three UAE women attacked with hammer at London hotel

    I really feel that Arabian Business.Com should now close this comments page. This should be all about sympathy for the families not what it is/has turned... more

    Wednesday, 16 April 2014 1:06 PM - Adrienne
  • 51
    Why Dubai isn't a plastic city

    What is definitely not a plastic city. The Arabs have a culture dating back to several centuries. 50 years back Dubai was just a fishing village. Today... more

    Tuesday, 8 April 2014 3:49 PM - P. MADHUSUDAN
  • 48
    DMCC boss Ahmed Bin Sulayem entertains Robert Mugabe in Dubai

    @fga ''However today, simply because he decided to dispossess a few white farmers of their land and redistribute to the poorer indigenous blacks'' more

    Sunday, 13 April 2014 3:02 PM - Matt Williams