The financing is the largest KWD financing in the history of Kuwait
ASAR – Al Ruwayeh & Partners (ASAR), Kuwait’s leading and most prominent corporate law firm, and one of the region’s top tier firms, has acted as legal counsel of National Bank of Kuwait, Kuwait Finance House and other financial institutions in respect of the conventional and Islamic financing of the Kuwait National Petroleum Company’s (KNPC) clean fuels project. The project includes the upgrade and integration of the two largest existing refineries in the country, i.e., Mina Abdulla and Mina Al Ahmadi refineries. The project will increase the combined capacity of the refineries from the existing 736,000 barrels per day to 800,000 barrels per day, and will lower the sulphur content of petroleum products to 5%.
The overall cost of the project is KWD 3.4 billion (US$11.35 billion), and is part of the Kuwait’s KWD 30 billion (US$100 billion) economic development plan.
The importance of this financing comes from the fact that it is the first financing to be obtained by KNPC and it is the largest KWD financing transaction in the history of Kuwait and amounts to KWD 1,2 Billion (around US$ 4 Billion).
Rob Little, Counsel at ASAR said: “Our involvement in a transaction of this magnitude is a testament to the solid development of Kuwait based companies. This latest deal highlights ASAR’s capabilities in servicing Kuwait’s top tier companies and financial institutions in the Kuwaiti market.”
Ibrahim Sattout, Partner at ASAR said: “We have been honored to work with and represent the lenders in this high profile transaction and we appreciate the confidence and trust that the lenders have put in our firm. We look forward to continuing to assist our clients in reaching their business and strategic objectives.”
John Cunha, Partner at ASAR said: “Despite challenging economic times, this transaction underlines the interest of the economic players in the oil sector and its development. This deal affirms ASAR’s trusted involvement with prominent organizations in numerous landmark projects that are part of the country’s development plan.”
With dedicated offices in Kuwait and Bahrain coupled with its associated offices and relationships, ASAR provides clients across an extensive range of industry sectors with comprehensive legal advice and support for their business activities in Kuwait, across the GCC and beyond.
The firm has been consistently rated as the leading corporate and commercial law firm in Kuwait by reputable legal guides such as the Chambers Global Guide, International Financial Law Review (IFLR) and the Legal 500. In 2015, ASAR was awarded with the IFLR National Law Firm of the Year Award; an award which ASAR has been delighted to receive for the 7th consecutive year. The firm also won the “Best Restructuring Deal in the Middle East” award by IFLR in 2014. Further, the firm won the prestigious “2014 Commercial Litigation Law Firm of the Year” and the “2014 Best Banking and Finance Legal Team –Kuwait” awards from Acquisition International Magazine in 2014. ASAR lawyers have also received multiple awards under different categories in the Fourth Edition of ‘Best Lawyers’ in Kuwait.