Banks Receptive To Kuwait Loan
BANGKOK -- International commercial banks have so far agreed to underwrite more than half of Kuwait's $5 billion loan offering, which was launched last week to help the country in its postwar reconstruction program.
Abdullah Al-Gabandi, managing director of the Kuwait investment authority, has been lobbying commercial bankers here at the annual general meeting of the International Monetary Fund and the World Bank. He said that 15 banks from Germany, France, Switzerland, and the United States, as well as two Arab banks, have so far agreed to participate.
"It has helped being in Bangkok. It has given us an opportunity to meet and talk with the banks," he said.
He reported that he plans to increase the total underwriting group to as many as 24 banks.
Mr. Gabandi denied suggestions that banks had objected to the pricing of the facility, which offers 50 basis points over the London interbank offered rate for 5 years. Repayment will start after 3 1/2 years. The loan provides a 10-basis-point underwriting fee and 35-basis-point management fee.