NBK signs a KD 80 Million (US $ 279 Million) Loan Agreement with KIPCO

Faisal Al Ayyar (KIPCO) & Shaikha Al Bahar (NBK) during the signing ceremony.

NBK signs a KD 80 Million (US $ 279 Million) Loan Agreement with KIPCO

National Bank of Kuwait (NBK) has signed today a loan agreement with Kuwait Projects Company (KIPCO) whereby the latter gets a KD 80 million (US $ 279 Million) for a period of five years to finance company projects.

On the occasion of the signing, KIPCO Vice Chairman, Faisal Al Ayyar said: “The new loan facility reflects KIPCO’s standing within the financial community, and this five year-loan facility with NBK is part of the long-term relationship between the two institutions. The relationship is founded upon mutual appreciation and respect; we have always been impressed by NBK’s level of professionalism and commitment”.

“This deal is consistent with our strategy of actively managing our funding base through extending maturities and diversifying our currency and investor mix. It is another example of the prudent liability management that has allowed us to weather the worst financial crisis in recent memory”, Al Ayyar added.

NBK Deputy Chief Executive Officer, Shaikha Khalid Al Bahar said: “We have the highest regards for KIPCO, and are very happy to close this sizeable transaction with KIPCO at this time. We are equally impressed by KIPCO’s strategic thinking and commitment to the Kuwaiti market and the Kuwaiti economy.  This financing is in line with NBK's strategy in Kuwait, which aims at supporting the local economy and providing adequate funding for domestic companies”.

Al Bahar added that the ongoing cooperation between NBK and the most prestigious and prominent corporations in Kuwait, with respect to long-term strategic funding, is yet another testament to the sizable confidence that NBK enjoys as a trustworthy partner to these corporations. The overwhelming inclination amongst these corporations is to benefit from the best value-added financial services available, by maintaining a close relationship with a leading bank in the field of Corporate Banking, National Bank of Kuwait.  

The loan, which matures in July 2014, preceeds the $500million seven year international bond issue which KIPCO concluded earlier this month, the first international bond issue by a private sector corporate in the MENA region this year. KIPCO holds almost US$1 billion in cash with the bulk of its liabilities maturing in the next five and seven years.

About National Bank of Kuwait (NBK):
NBK was founded in 1952 as the first indigenous bank and the first joint stock company in Kuwait and the Gulf Region. NBK reported net profits of USD 703 million (KD 201.5 million) for the first nine months of 2009. NBK achieved USD 263 million for the third quarter ending 30 September 2009 compared with USD 239 million for the same period in 2008, an increase of 10%. NBK's total assets reached USD 42.6 billion (KD 12.2 billion) at the end of September 2009, while shareholder equity stood at USD 6.1 billion (KD 1.7 billion).
NBK is by far the largest financial institution in Kuwait with effective market dominance in the commercial banking market and has been consistently awarded the highest credit rating of all banks in the region from Moody's, Standard & Poor's, and Fitch Ratings. NBK also stands out in terms of its local and international network, which includes branches, subsidiaries and representative offices in China, Geneva, London, Paris, New York, Singapore, and Vietnam alongside its regional presence in Lebanon, Jordan, Egypt, Bahrain, Qatar, Saudi Arabia, Turkey, and the UAE.

About Kuwait Projects Company (KIPCO):
The KIPCO Group is one of the largest diversified holding companies in the Middle East and North Africa, with assets under management of US$ 23 billion. The Group has significant ownership interests in a portfolio of over 60 companies, employing over 8,000 people and operating across 21 countries. The company’s main business sectors are financial services and media. Through the subsidiaries and affiliates of its core companies, KIPCO also has interests in real estate, manufacturing and the management advisory sector.