Italy provides loan guarantees for Kuwait's Clean Fuels project

31 December 2017
The credit arrangement will help KNPC finance its strategic $14.5bn Clean Fuels project

Italian export credit agency Sace has guaranteed a $625m loan issued by a pool of international banks, led by BBVA Milan Branch in the role of Sace Facility Agent, in favour of the state-owned Kuwait National Petroleum Company (KNPC).

The credit arrangement will help KNPC finance its strategic $14.5bn Clean Fuels project, which includes the modernisation and expansion of its Mina Abdullah and Mina Al-Ahmadi refineries.

By way of its Clean Fuels project, KNPC intends to create a modern, integrated downstream complex that can produce key petrochemical products to meet local and international demand, with minimal environmental impact.

Sace in a press release says the credit facility for Kuwait Petroleum Corporation (KPC) subsidiary KNPC is part of its strategy to facilitate and strengthen the competitiveness of Italian exports among selected foreign buyers.

Sace states that its executives met senior management members of KPC on the sidelines of the Adipec oil and gas trade event in Abu Dhabi last month to negotiate on the business plan. Further meetings are to be organised in coming months, Sace says, to facilitate the awarding of contracts to potential Italian exporters interested in the opportunities offered by KPC, which will require estimated investments of $300bn dollars by 2030.

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