Duqm Refinery celebrates financial close
Muscat: Duqm Refinery announced its project’s financial close at a gala dinner held at the Intercontinental Hotel, Muscat. Achieving a multi-source project financing for the Duqm Refinery project was a major milestone for the project.
Speaking on the occasion, the President of Kuwait Petroleum International and Chairman of Duqm Refinery, Mr. Nabil Bourisli, said: This achievement reflects the strength and stability of the Omani and Kuwaiti economies. It also reflects the trust and confidence of local, regional and international financial institutions in our economic ties that are deeply rooted in history. He added, “Our Vision is aiming at maximizing the value of our natural resources and driving the two countries toward expanding their economic potential that leads to balanced economic growth.”
Eng. Hilal Al Kharusi, Vice Chairman of Board of Directors of Duqm Refinery commented on the occasion: “this is indeed a very important milestone for the project. It reflects the trust that financial institutions have placed in the project which with no doubt will be one of the key economic drivers for SEZAD. He further
Eng. Khalid Al Mushaileh, vice president of Kuwait Petroleum International stated “Kuwaiti banks were effectively involved in financing the project achieving 32% of the total loan amount. This is driven by the importance of the project as well as the strategic partnership between the two brotherly countries. He added, “this project is in line with Kuwait Petroleum Corporation 2040 strategy and it is at the same time a great opportunity to involve skilled Kuwaiti workforce to be part of these external investments”.
“The US$ 4.6 Billion multi-sourced financing signed for the Project is not only the largest project financing in the Sultanate of Oman, it also includes the largest
The US$ 4.6 Billion senior debt facilities comprise of seven agreements that includes (i) a US$ 1.43 bn International Commercial Facility, (ii) a US$ 490 million Onshore Commercial Facility, (iii) a US$ 890 million Islamic Facility, (iv) a US$ 700 million UKEF Covered Facility, (v) a US$ 500 million CESCE Covered Facility, (vi) a US$ 600 million K-EXIM Covered and K-EXIM Direct Facilities. Regional banks have played a big role in this deal with funding from Kuwaiti and Omani banks representing 43% of total debt.
National Bank of Kuwait, Kuwait Finance House, Crédit Agricole, Corporate and Investment Bank, KfW IPEX-Bank, Société Générale, Sumitomo Mitsui Banking Corporation, Bank Muscat, Boubyan Bank, Banco Santander, Bank of Tokyo-Mitsubishi UFJ, Ltd, BNP Paribas, Commercial Bank of Kuwait, ICBC, Bank Dhofar, Qatar National Bank, APICORP, Natixis, Standard Chartered Bank, National Bank of Oman, Warba Bank, Korea Development Bank, Credit Suisse, HSBC, Intesa Sanpaolo, UBI Banca, Ahli United Bank Kuwait, Bank Sohar, Ahli Bank Oman are the banks providing facilities to the Duqm Refinery project.
A number of specialist advisers were engaged to support the financing of the Project which include Crédit Agricole Corporate and Investment Bank as Financial Adviser to Duqm Refinery, Allen & Overy LLP as International Legal Counsel to Duqm Refinery, and Latham & Watkins LLP as International Legal Counsel to Lenders.
The Refinery project comprises the development, construction, ownership and operation of the refinery, on-site utilities, infrastructure
The Refinery is designed to be able to process a range of blended crude oils and configured as a full-conversion
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