Kuwait’s GRF Agrees to 15 Year Dividend Repayment with Kuwait Petroleum Corporation
Posted on 04/26/2021
The Kuwait Investment Authority (KIA) manages the General Reserve Fund (GRF) and Future Generations Fund (FGF). KIA reached an agreement with Kuwait Petroleum Corporation, in which the state-owned oil company will pay 8.25 billion Kuwaiti (US$ 27.04 billion) dinars in accrued dividends over 15 years to the SWF.
Kuwait Petroleum Corporation has owed roughly 7 billion Kuwait dinars in dividends to the GRF. The GRF is a stabilization fund, helping to cover Kuwait’s budget deficits. Kuwait Petroleum Corporation and GRF agreed to a repayment schedule by which the oil major will pay 550 million Kuwaiti dinars annually to the GRF during the next 15 years.
Kuwait Petroleum Corporation has faced funding issues. Kuwait Petroleum Corporation seeks to borrow as much as US$ 20 billion over the next five years in a bid to maintain the Kuwait’s crude-production levels.