Kuwait Petroleum to raise $1bn revolving loan

Kuwait Petroleum Corp (KPC) is finalising a $1bn loan with a small group of international banks, three sources familiar with the deal said.

The loan, a revolving credit facility, comes amid a slowdown in the regional loan market, as borrowers have increasingly raised financing through bonds to take advantage of lower rates.

The state-owned oil company, which did not respond to a request for comment, plans to invest hundreds of billions of dollars by 2040 as it aims to boost its crude oil production capacity to 4.75 million barrels per day by that date.

The new loan is likely to be finalised in September or October at the latest, one of the sources said.

KPC, advised by NBK Capital, was recently in talks with Kuwaiti banks for a separate loan, sources told Reuters last month.