Kuwait Energy Company, one of the largest independent exploration and production companies in the Middle East, today announces that it has secured a USD 50 million loan from the International Finance Corporation (IFC), a member of the World Bank Group. This loan is to accelerate the development and exploration of its oil and gas assets in Egypt and Yemen and promote good environmental and social management.
This is the first time the IFC finances a Kuwaiti company. The package consists of a USD 35 million reserve based facility and a USD 15 million income participation facility. The financing from IFC will be executed via a murabaha transaction.
Kuwait Energy’s CEO, Ms. Sara Akbar said, “We are benefiting greatly from IFC’s expertise at this early stage of our company’s growth. IFC executes highly customized financing and are providing us valuable advice with environmental and social management. We are proud to be working with an organization that helps guide us in implementing the best environmental and social management practices.”
Since its establishement in 2005, Kuwait Energy has grown significantly in reach and asset allocation, quickly enabling it to gain the reputation of the fastest growing independent E&P company in the Middle East.
IFC’s funds will help Kuwait Energy develop a series of recent oil discoveries in Egypt and carry out additional exploration in Yemen. Kuwait Energy contributes to the increase in the production of oil and gas so that the sector can continue providing jobs, foreign exchange reserves, and government revenues in both countries.
IFC’s Global Head for Oil and Gas Lance Crist said, “This transaction provides a unique opportunity for IFC to support a new class of local private oil and gas companies in the Middle East and North Africa, that are expanding regionally and providing valuable jobs and revenues to governments.”
“Kuwait Energy shares our commitment in setting new standards for environmental and social management in the region. We look forward to a long term relationship with them,” Crist added.
Kuwait Energy is considering an initial public offering (IPO) in the London and/or Kuwait stock market and has received support and advice on its upcoming listing from the World Bank on corporate governance and communications.