Deliver Your News to the World

Citi Arranges a USD 320 Million Syndicated Term Loan Facility for Kuwait Foreign Petroleum Exploration Company (KUFPEC)


KUFPEC today announced that it had closed a USD 320 Million five-year syndicated loan arranged by Citibank, N.A. (“Citi”) (Mandated Lead Arranger & Sole Bookrunner). The deal marked the debut debt capital markets transaction for KUFPEC. The proceeds will be deployed by KUFPEC to expand its already buoyant oil and gas business.

The facility was distributed in both the international and the local bank market, and, despite difficult conditions in the wider markets, was well received, being over-subscribed both in Kuwait and abroad. The syndicate comprises six international banks and four Kuwaiti banks.

Established in 1981, KUFPEC is a wholly-owned subsidiary of Kuwait Petroleum Corporation (KPC), the holding company for Kuwait’s energy sector interests in Kuwait and worldwide. KUFPEC’s mission is to pursue explorations and acquisitions, and the development and production of hydrocarbon energy sources outside the State of Kuwait.

KUFPEC Chairman and Managing Director, Mr. Fahed S. Al-Ajmi, said: “The successful closing of this transaction in current market conditions is a clear demonstration of the capital markets’ confidence in KUFPEC, and it will help us develop our company to new heights. KUFPEC is proud to have closed its first loan deal to be syndicated in both the local and international market.”

Mr. Raj Dvivedi, Citi Country Officer for Citibank, N.A. Kuwait, said that he was delighted with the keen response to the facility from both local and international financial institutions. "Our relationship with the KPC group dates back many years, yet this is the first major transaction we have led for a KPC entity since we established our presence locally. This deal also represents a first for a KPC entity as it marks the debut corporate finance transaction for a 100% owned subsidiary of the group.

“We are delighted that the counterparty was KUFPEC, whose professional management team was of great support in conducting the deal in such difficult market conditions. I must also recognize the valued support of the experienced KPC finance team, and the professionalism of the participating financial institutions,” said Mr. Dvivedi.


This news content was configured by WebWire editorial staff. Linking is permitted.

News Release Distribution and Press Release Distribution Services Provided by WebWire.