State of Kuwait / Loan Insurance for KNPC’s Clean Fuels Project

Nippon Export and Investment Insurance (NEXI) has decided to provide insurance for loans extended to support the Clean Fuels Project, which is implemented by Kuwait National Petroleum Company K.S.C. (KNPC), an oil refinery subsidiary of Kuwait Petroleum Corporation.

As part of the Clean Fuels Project, KNPC plans to modernize the Mina Al Ahmadi oil refinery located in Al Ahmadi Governorate, south of the country, to make it meet the strictest environmental criteria. JGC Corporation and its partners have been awarded a lump-sum contract to upgrade the refinery.

KNPC is going to fund this refinery upgrading project through corporate financing, including funds for purchasing necessary equipment from Japan. For the purchase of the Japanese equipment, Japan Bank for International Cooperation (JBIC) and commercial banks will jointly provide USD 1 billion in loans, and NEXI’s insurance will support the USD 500 million loans provided by the commercial banks that are Sumitomo Mitsui Banking Corporation, the Bank of Tokyo-Mitsubishi UFJ, Ltd., Mizuho Bank, Ltd. and the Hong Kong and Shanghai Banking Corporation Limited Tokyo Branch.

To achieve the “Partnership for Quality Infrastructure” announced by Japanese Prime Minister Abe in May 2015, NEXI clarified its cover policy for sub-sovereign risk in April 2016 (https://www.nexi.go.jp/topics/cover/2016033004.html). This is the third time since then that NEXI has provided loan insurance to cover sub-sovereign risk without government guarantee.

The loans will indirectly and financially support the Japanese exports and help Japanese companies to maintain and strengthen their international competitiveness. NEXI will continue to actively support exports by Japanese companies.

Contact:　　Natural Resources Group I, Structured and Trade Finance Insurance Department
Tel: +81-3-3512-7672