Wednesday 21, February 2018 by Robin Amlôt

KFH, NBK sign KWD 249.2 million credit deal with Limak

Limak İnşaat, currently constructing the new passenger terminal at Kuwait International Airport, and Kuwait’s two largest banks, the National Bank of Kuwait S.A.K.P. (NBK) and Kuwait Finance House K.S.C.P. (KFH), have signed a KWD 249.2 million Syndicated Credit Agreement to partly finance the construction, completion, furnishing and maintenance of Kuwait International Airport (KIA) New Passenger Terminal II.

Under the Agreement, NBK is the Mandated Lead Arranger, Intercreditor Agent, Security Agent and Account Bank, and KFH is the Mandated Lead Arranger and Commodity Murabahah Investment Agent. With the signing, NBK and KFH will jointly finance KWD124.6 million each to facilitate construction works on KIA New Passenger Terminal II currently being constructed by Limak. The terminal is designed to handle 25 million passengers per year and accommodate all aircraft types through 51 gates and stands.

The agreement was signed by Limak Holding Chairman Nihat Özdemir, NBK Chairman Nasser Musaed Al-Sayer, and KFH Chairman Hamad Al-Marzouk. In attendance at the signing ceremony were H.E. Ms. Ayşe Hilal Sayan Koytak the Ambassador of the Republic of Turkey to Kuwait and her delegation, and senior executives and board members from Limak İnşaat, Limak Holding, the National Bank of Kuwait, Kuwait Finance House, and the Ministry of Public Works.

NBK Chairman Mr. Nasser Musaed Al-Sayer said, “The National Bank of Kuwait is pleased to be selected as the lead arranger of this transaction to finance and arrange credit facilities for the new passenger terminal project at Kuwait Airport. This reflects our strong commitment to be the partner of choice for the world’s leading and renowned contractors, executing Kuwait’s multi-billion dollar projects. Our journey with Limak actually started in 2016 when we partnered with KFH to issue a Performance Bond on behalf of the company for the much-awaited New Passenger Terminal. Since then, we’ve been providing the day-to-day banking support to Limak and are delighted to conclude and sign today Limak’s needs for additional banking facilities including Bank Guarantees, Letters of Credit and Working Capital, to the tune of KD 249.2 million.”

KFH Chairman Mr. Hamad Al-Marzouq said, “Kuwait Finance House is honored to be selected as the lead arranger for Sharia’ah compliant facilities for this landmark project considered to be one of the most important construction and infrastructure projects under Kuwait’s development plan. Under this agreement, we will contribute to the extension of credit lines for the Kuwait International Airport Terminal II project to Limak who have significant experience in establishing international airports. The transaction builds on KFH’s growing track-record of financing mega-projects with advanced Sharia’ah-compliant finance solutions spanning four decades. We wish Limak success in the completion of the airport project and look forward to a fruitful and long-lasting relationship and cooperation on future vital projects.”

Features & Analyses