National Bank of Kuwait (NBK) has signed an agreement to arrange a $280m loan for Kuwait Styrene Company (TKSC), according to the Kuwait News Agency.

NBK will be the lead arranger for the syndicated loan.

The finance will be used for general business purposes, and to improve competitiveness.

TKSC is a joint venture between the US’ Dow Chemical Company and Kuwait Aromatics Company (Karo), which started production in 2009. Dow is currently trying to reduce its stake in its Kuwaiti joint ventures, most importantly Equate Petrochemicals Company, Karo and TKSC’s parent company.

Equate is borrowing $5bn from a group of banks comprised of US-based JPMorgan Chase and Citigroup, UK-based HSBC, Kuwait Finance House and NBK. The loan is to finance an acquisition from Dow Chemical as part of the restructuring.

Equate is currently 42.5 per cent owned by Dow Chemical and 42.5 per cent by Kuwait’s state-owned Petrochemical Industries Company (PIC).

Equate’s 2015 net profit in 2015 fell by 28.9 per cent to $739m, affected by lower petrochemical product prices.