JPMorgan Joins HSBC in $6 Billion Financing for Kuwaiti Oil Pipeline Stake Deal
JPMorgan and two Kuwaiti lenders are participating in a $6 billion financing syndicate for prospective buyers of a stake in Kuwait Petroleum Corporation's crude oil pipeline network. The deal, which was initially set to close on April 7 but has been delayed due to the conflict between the US and Iran, is now expected to be finalized by April 28.
The loan being offered by JPMorgan and others has a 20-year tenure and indicative pricing of 170 basis points over the Secured Overnight Financing Rate. This pricing is considered competitive given current market conditions in the region, according to one of the people with knowledge of the matter.
Kuwait's central bank responded to the conflict by easing regulatory requirements on local lenders, including lowering liquidity standards and raising lending limits. The move was aimed at keeping credit flowing and supporting economic stability.