Kuwait's state oil company seeks to borrow up to $1 bln

The state-owned Kuwait Petroleum Corporation is seeking to borrow up to $1 billion from banks including HSBC and JPMorgan, according to a parliamentary document reviewed by Reuters.

Oil Minister Mohammad al-Fares said in response to a lawmaker's inquiry, "The Kuwait Petroleum Corporation is currently negotiating with the Japanese export credit agency to provide insurance cover for the financing that the corporation will obtain from a group of international banks, including HSBC and JPMorgan, with a value not exceeding $1 billion for a period of 13 years."

An external borrowing plan for KPC was approved by Kuwait's cabinet in April 2019 for the financial years 2018/19 to 2022/23.

The financing will be used for capital expenditure, including on oil and gas production, Fares said.

"It was found that there is a need to invest large amounts of money in order for the corporation to implement (its five-year) strategy and to maintain and develop production levels," he said.