Equate Petrochemical Co in talks with banks to refinance US$6 bln loan

摘要

Kuwait's EQUATE Petrochemical Co is in talks with banks to refinance a US$6 bin bridge loan that it secured last year. According to Reuters, the venture between Dow Chemical and Petrochemical Industries Co (PIC) of Kuwait is seeking funds split into portions of three years and five years, however No response has been received from EQUATE. Kuwait's finances have been hit by a slump in oil prices. This has squeezed banking system liquidity, forcing government and quasi-sovereign entities to scramble for financing ahead of possible U.S. interest rate hikes in the coming months. EQUATE's loan would facilitate the exit of Dow from some of its ventures in Kuwait; the sale of ME Global is part of Dow's bigger plan to optimise ownership in its Kuwait operations.