We recently expanded our news and analysis coverage to include CEEMEA - look out for articles from across the region!
Kuwait Investment Authority (KIA), on behalf of Kuwait’s Ministry of Finance, has closed a $4.25bn three-year loan facility with a consortium of Asian and international lenders, according to 9fin sources.
The loan offers all-in pricing of SOFR+80bps, said the sources. The facility also includes two one-year extensions at the lenders’ discretion.
9fin first reported that the sovereign wealth fund launched the loan into syndication on 2 July.
Mizuho, HSBC, Standard Chartered and SMBC were the mandated lead arrangers and bookrunners, as reported. Mizuho was the coordinator.
The state entity will use the funds for general corporate purposes. Commitments were originally due by 16 July.
Going everywhere
KIA’s foreign funding loan comes as the Gulf state’s public finances are under strain following several months of disruption in the Strait of Hormuz as well as damage and other economic fallout from the US/Iran war.
Along with foreign financing, it is likely KIA will lean on Kuwaiti banks, said one banker familiar. Such funding would be in local currency and much smaller, however.
Kuwait also turned to the eurobond markets...
