KUWAIT: National Bank of Kuwait (NBK), the leading regional bank with presence spanning numerous leading financial center around the word, and PT Kilang Pertamina Internasional (KPI), the refinery arm of PT Pertamina (Persero), Indonesia’s state energy firm and a Fortune Global 500 company, have announced a significant milestone in their collaboration by signing a non-binding Memorandum Of Understanding (MoU) for bilateral and syndicated bank financing facilities.

This agreement was unveiled at the prestigious Abu Dhabi International Petroleum Exhibition Conference (ADIPEC), the world’s most influential gathering for advancing global energy, held in Abu Dhabi from 2-5 October 2023. The non-binding MoU was signed by Zaid Al-Sager, Deputy Head of the International Banking Group at NBK, in the presence of Meshari Bin Salamah, Deputy General Manager and Head of International Corporate & Commercial Real Estate, International Banking Group at NBK, and Andrew Tan, General Manager of NBK Singapore Branch.

Meanwhile, Taufik Aditiyawarm, CEO and president Director of KPI, acted as the signatory on behalf of KPI in formalizing the agreement. The MoU which shall be based on good corporate governance principles reflects a deepening of the strategic partnership between NBK and KPI, marking a significant step towards achieving mutually beneficial financial objectives within the energy and petrochemical sectors. Both organizations are committed to advancing sustainable energy solutions and driving economic growth across the Middle East region and beyond.

Zaid Al-Sager on the sidelines of signing of the agreement.

Their commitment to the United Nations Global Compact (UNGC) and integrating Environmental, Social, and Governance (ESG) principles into their operational strategies underscore their shared vision for a more sustainable future. Zaid Al-Sager commented on the significance of this MoU, stating, “This partnership exemplifies our dedication to supporting global energy initiatives while fostering sustainable economic growth. Our engagement the group traces its roots back to 2016 when NBK Singapore initiated an uncommitted trade financing facilities. In 2022, a significant meeting was arranged in Jakarta, facilitated by NBK Singapore.

We take immense pride in our ongoing collaboration with PT Kilang Pertamina Internasional and our role in contributing to the success of their numerous global projects.” NBK’s extensive global reach, financial expertise, and commitment to sustainability align seamlessly with KPI’s strategic vision and mission. The MOU outlines pivotal collaboration areas as NBK and KPI join forces to deliver bilateral and syndicated financing solutions. These solutions are designed to bolster KPI’s projects and stimulate the expansion of its international operations.

They encompass syndicated / Club Deal Corporate Loans, structured Commodity Finance, and project financing tailored to KPI’s investment ventures. “This strategic agreement places a significant focus on sustainable finance, knowledge exchange, and capacity enhancement within both the energy and financial sectors, with the overarching goal of promoting economic development,” Al-Sager added. “As we persist in harnessing local and regional prospects, further reinforcing NBK’s prominent position in funding substantial strategic projects across diverse sectors, including oil and gas, our engagement in ADIPEC 2023 is positioned to enhance our worldwide standing in oil and gas project financing.

A group photo with PT Kelang Pertamina International officials.

This extends far beyond the confines of the Middle East, transcending geographical boundaries,” Al-Sager confirmed. Meanwhile, Taufik Aditiyawarm, CEO and president Director of KPI, conveyed his optimistic outlook for future collaboration, stating, “We believe that joining forces with NBK opens new horizons for cooperation that serve common purposes and interests. It will not only strengthen our financial capabilities but also enable us to accelerate our mission to provide efficient, reliable, and sustainable energy solutions. We are excited about the possibilities that lie ahead.”

“This is a significant milestone in the strategic partnership between NBK and KPI, setting the stage for innovative financial solutions that will drive economic growth and sustainability in the energy sector,” Aditiyawarm highlighted. With the execution of the non-binding MOU, NBK secures the coveted position of being one of two banks in the Middle East having first access to PT Kilang Pertamina Internasional’s upcoming financing opportunities. This strategic arrangement underscores NBK’s commitment to developing long-term partnerships and furthering its role as a key financial facilitator for significant energy projects.

By securing this position, NBK has set the stage for forging broader relationships with Indonesia’s key state-owned entities, reinforcing its reputation as a reliable partner for global economic development endeavors. This significant milestone is a testament to NBK’s strategy to develop global strategic relationships through its international branch locations. The collaboration between these two industry giants not only points to a promising future in energy financing but also exemplifies the significance of global partnerships in propelling sustainable economic growth and development.

National Bank of Kuwait is the largest financial institution in Kuwait and predominates in the commercial banking sector. Internationally, NBK’s network includes branches, and subsidiaries, a in countries such as London, New York, Paris, Geneva and Singapore, as well as China (Shanghai). Meanwhile, regional coverage extends to Bahrain, Egypt, Iraq, Lebanon, Saudi Arabia, and the UAE.

The bank enjoys one of the highest credit ratings among all banks in the region, collectively from global rating agencies: Moody’s, Standard & Poor’s, and Fitch. As a leading international financial institution, NBK is known for its commitment to delivering innovative financial solutions and services to clients worldwide. With a strong emphasis on sustainability and responsible banking, NBK is pivotal in supporting economic growth and development across various sectors.