National Bank of Kuwait (NBK) has participated in financing Kuwait Petroleum International's (KPI) acquisition of Shell's Italian assets. NBK is the only Arab and Kuwaiti bank participating in this financing.
Sheikh Al Bahar, NBK's Deputy Group Chief Executive Officer, and Bakheet Al Rashidi, KPI Chief Executive Officer, signed the loan agreement at KPI's headquarters in Kuwait.
On June 30, 2014, KPI, a subsidiary of Kuwait Petroleum Corporation (KPC), signed a Share Purchase Agreement with Shell for the acquisition of 100 per cent of its shares in two entities comprising Shell's Italian assets. The assets comprise of a Retail, Supply and Distribution business (Shell Italia S.p.A.) and Shell Italia Aviazone S.r.l.
"This loan agreement with KPI highlights the strong, historical relationship that NBK enjoys with KPC and all its subsidiaries. For more than four decades, NBK has been the banking partner of choice for Kuwait's oil sector," said Al Bahar. "This agreement affirms NBK's commitment to deploy all its potentials and expertise to support Kuwait's oil sector and finance the development and expansion plans of its companies in Kuwait and aboard."
Al Bahar added: "Our participation in financing this acquisition also reflects NBK's strong reputation, professionalism and track-record in financing mega deals. We are glad to support KPI in its endeavor to strengthen its position in the Italian and European markets."
Al Rashidi said that "KPI's acquisition of Shell's Italian assets represents a strategic step toward achieving our vision to become a leading global company. In addition to increasing our market share in Italy, making us the second biggest operator in the Italian market, this acquisition will leverage KPI's competitiveness in the European markets."
Al Rashidi added: "We are glad to have NBK as our banking partner once again in this acquisition. We thank NBK and all the other international banks that are involved in the financing of this acquisition."