The Kuwait National Petroleum Company (KNPC) and Watani Investment Company (NBK Capital) have signed a financial advisory contract worth KD 650,000 for the Clean Fuels Project (CFP), CEO of KNPC Mohammad Ghazi Al-Mutairi said on Sunday.
KNPC is committed that the Kuwaiti private sector will contribute up to 20 percent to the project, about KD 800 million, from the total costs, KD 4.6 billion, Al-Mutairi told KUNA.
NBK Capital was selected as an exclusive financial advisor to KNPC for the CFP financing due to the company's record in assisting numerous clients raise financing, after a competitive bidding process amongst international and regional banks, said Khaled AL-Asousi, KNPC Deputy CEO for Support Services.
He added that NBK Capital would play a vital role in assessing funding requirements, determining an effective capital structure, negotiating and securing preferential terms with lenders and maximizing the overall return of the project. It will also assist the company throughout 12 months in raising the required funding to finance CFP.
For his part, NBK Capital CEO Salah Al Fulaij said that it is honor for the company to be awarded the advisory mandate "for the largest project and the largest financing deal in the history of Kuwait.
"It is also a testament to the NBK Capital's success since its inception in 2005, and the quality of service that our professionals deliver to clients," Al Fulaij added, noting that it is a ground-breaking transaction for Kuwait that will emphasize the country's presence on the global stage and stimulate the local economy, which has long anticipated similar mega projects.
Deputy NBK Capital CEO for Planning and Local Marketing Shukri Abdul Aziz Al-Mahrous said that the company will be in charge of forming a bank group to raise financing for the project, preparing a comprehensive study for the process.