Commercial Bank: Initial deal for 3-year Chinese yuan bilateral loan facilities

Kuwait Commercial Bank (KCB) announced its successful completion of its first offshore Chinese yuan (CNH) bilateral credit facility, signing a three-year CNH loan facility agreement.

Commenting on the deal, Sheikh Ahmed Al-Duwaikh, Chairman of the Board of Directors of the bank, said: “This transaction represents a landmark structural milestone for the Kuwaiti banking sector, highlighting the growing trend among financial institutions in the Gulf Cooperation Council (GCC) region to tap into specialized liquidity sources in Asian currencies.” He added that executing such deals underscores the bank’s strong financial soundness and credit credibility on the global stage, and reflects our firm commitment to delivering innovative financial solutions that support our corporate objectives of growth and expansion.

The transaction was structured in collaboration with the Agricultural Bank of China – Dubai International Financial Centre (DIFC) Branch, acting as the facility agent, while Al-Tamimi & Company provided comprehensive legal support and advisory services for the deal.

For her part, Ilham Mahfouz, Chief Executive Officer of the bank, stated: “The execution of this three-year offshore Chinese yuan (CNH) facility marks a significant and advanced step in the bank’s financing strategy. Our entry into the Chinese yuan market demonstrates our bank’s ability to go the extra mile and transcend conventional boundaries to access diverse international funding sources. The proceeds from this transaction will be allocated for general corporate purposes, directly contributing to strengthening the resilience of our balance sheet.”

On his part, Hussein Al-Aryan, Head of Treasury and Investment at the bank, said: “We are extremely pleased with this major success and the execution of the bank’s first CNH-denominated bilateral loan. Securing this three-year financing facility represents a pivotal achievement for the bank’s treasury operations, as it enables us to easily access alternative international currency markets to optimize our liquidity structure. The precise arrangement and execution of this deal – in collaboration with prestigious global institutions such as the Agricultural Bank of China – reflect the depth of expertise and agility of the bank’s Treasury and Investment sector team, paving the way for future new transactions in international capital markets.”