Kuwait City: State-owned refiner Kuwait National Petroleum Company (KNPC) yesterday signed the first tranche of financing for its multi-billion-dollar Clean Fuels Project, a major plank of the country’s economic development plan.
The tranche, provided by local banks and lasting for 10 years, is worth 1.2 billion dinars ($3.98bn) and led by National Bank of Kuwait and Kuwait Finance House , KNPC chairman Jamal Al Noori said at the signing ceremony. Pricing details were not given.
KNPC chief executive Mohammed Al Mutairi had said last month that the first tranche would be worth 900 million dinars. No reason was given for the increase in size.
The second tranche of the loan, which will be arranged by international lenders, is expected to be $6bn and close by the end of this year, KNPC acting chief executive Ahmad Al Jimaz said at the ceremony.