NBK CEO Shaikha Al Bahar with Chairman and Managing Director of Al Khorayef Group Saad Al Khorayef and Boubyan Vice Chairman and Managing Director Adel Al Majed
National Bank of Kuwait (NBK) and Boubyan Bank have led a coalition of five regional and Kuwaiti banks to arrange a KD 48 million syndicated loan for Al-Khorayef Group Company to finance the New Gathering Center 16 in West Kuwait.
NBK and Boubyan have been mandated by Al-Khorayef Group, a leading Saudi group, to arrange banking facilities of KD 48 million comprised of Islamic and Conventional tranches spread equally. The final maturity date of the syndicated loan is December 2017. NBK is the mandated lead arranger, intercreditor agent, security agent, account bank, performance Bond bank, advance payment guarantee issuing bank, and the letter of credit issuing bank. Boubyan is the Islamic Agent Bank.
“NBK is the leading bank in Kuwait when it comes to project finance,” said Shaikha Khalid Al-Bahar, NBK Kuwait CEO, following the signing ceremony of the financing agreement at NBK’s headquarters yesterday in the presence of representatives from participating banks. “Following lead roles played by NBK in project finance deals such as Equate and KPPC, this mandate is yet another testament of NBK’s professionalism and credibility in the market place.”
Al-Bahar added: “NBK has a long history in financing major development projects in Kuwait, especially oil projects. National institutions see NBK as a strategic partner in implementing vital projects in the country.”
Al-Khorayef Group Company has been awarded a contract by Kuwait Oil Company for the construction of New Gathering Center 16 in West Kuwait. The syndicated loan aims to finance this project.
In addition to NBK and Boubyan, the coalition consists of two conventional banks: Qatar National Bank and Bank Muscat, and one Islamic bank: Al-Ahli United Bank.
Al-Bahar praised the high-level of coordination and cooperation between all participating banks. “This deal, which gains a regional aspect, is clear evidence on the ability of Arab and Gulf banks to provide the necessary funding for vital, huge projects in the region.”
Boubyan Bank’s Vice Chairman and Managing Director Adel Al-Majed said that this co-financing highlights the distinctive cooperation between Kuwaiti banks, both conventional and Islamic, in financing development projects in Kuwait, particularly those related to the oil sector.
Norton Rose Group, Shaw Consultants International, DLA Piper, and Al Tamimi & Company International acted as the legal and technical advisors on this deal.
In addition to Shaikha Al-Bahar and Adel Al-Majed, the signing ceremony was attended by Saad Al-Khorayef, Al-Khorayef Group Chairman and Managing Director, Mazen Al-Nahed, General Manager, Corporate Banking Group, National Bank of Kuwait, Samir Salman, Acting General Manager, Qatar National Bank, Satish Menon, Bank Muscat’s CEO, and Walid AbdelKarim, Acting Deputy CEO, Ahli United Bank.