With Lenders Eager, Kuwait Borrowing More

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With Lenders Eager, Kuwait Borrowing More

LONDON - The Persian Gulf oil emirate of Kuwait is increasing the size of its international bank loan facility by $500 million, to $5.5 billion, after heavy oversubscription by lenders.

Announcing the increase Tuesday, lead manager J.P. Morgan & Co. said that in the two phases of syndication of the loan, placed among banks from 18 countries, a total of $7.89 billion was raised.

This ranks as one of the biggest global banking loans yet raised for a sovereign country, bankers said.

The Loan Participants

Kuwait decided last month to approach banks for funding to help it recover from the affects of the war precipitated by the Iraqi invasion of August 1990.

A total of 80 banks supported the $5.5 billion loan, with several major U.S. banks represented.

The loan was equally underwritten by 24 lead managers who made initial commitments of $208 million each. The funds raised in general syndication will be partly applied to reducing that commitment to $150 million and partly to raising the overall size of the facility.

Lead managers in addition to Morgan included Chase Manhattan, Chemical, and Citicorp, with management takes of $150.2 million apiece.

Bank of New York went in as a colead manager, at $75 million. First National Bank of Chicago was a manager, at $25 million.

Worries in Britain

British banks, although declining to take part in the loan as prominent lead managers, participated at a lower level, syndicate details released by Morgan showed. …