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Market Chatter: JPMorgan, HSBC Lead $6 Billion Financing for Kuwait Pipeline Stake Sale

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JPMorgan (JPM) and two Kuwait-based lenders will join HSBC (HSBC) to form a $6-billion financing syndicate for potential buyers of a stake in Kuwait Petroleum Corporation's crude pipeline network, Reuters reported, citing sources.

KPC has reportedly been in discussions with a group of prospective buyers regarding the sale of a stake in crude oil pipelines worth almost $7 billion.

However, investors want guarantees given the risk of supply disruptions through Kuwait's pipeline network and the current situation in the Strait of Hormuz, a source told Reuters.

The syndicate is offering a loan to finance the KPC pipeline stake deal with a 20-year tenure and indicative pricing of 170 basis points over the Secured Overnight Financing Rate, the sources said.

National Bank of Kuwait and Kuwait Finance House are also reportedly participating in the loan.

HSBC is reportedly acting as lead underwriter for the transaction.

The stake sale was launched before the US-Israel campaign on Iran that began on Feb. 28.

The KPC pipeline complex transports crude and refined products across Kuwait, connecting it with the country's export terminals in the Arabian Gulf.

HSBC, JPMorgan, KPC, NBK, and KFH did not immediately respond to' requests for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Price: $312.01, Change: $+3.73, Percent Change: +1.21%

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