Bid & Tender
KNPC in Final Talks for $6.4bn Loans for Clean Fuels Project

Date : May 31, 2016

Kuwait National Petroleum Company (KNPC) is in final stages of talks with international institutions for $6.4 billion in the second tranche of loans to finance its multi-billion dollar Clean Fuels project.


The first portion, signed on April 28, was worth KD1.2 billion ($3.97 billion) with Kuwaiti lenders led by National Bank of Kuwait and Kuwait Finance House.


The state-owned KNPC refiner is in the process of final legal reviews for the foreign loans and will determine the pricing and interest rates, said the company's financial advisor Khalid Al-Ajeel.


International lenders for the second tranche will include credit agencies from Europe, South Korea and Japan, Al-Ajeel said.


Part of the country's KD30-billion economic development plan, the Clean Fuels Project will upgrade and expand two of the country's largest existing refineries with a focus on producing higher-value products such as diesel and kerosene for export.