Finance Minister: Kuwait's success in issuing $3.25 billion bonds reflects international investment community's confidence

Kuwait successfully issued bonds in global debt markets with a total value of $3.25 billion yesterday.

The issuance comprised two tranches: the first, worth $2.25 billion with a 3-year maturity, carried a spread of 75 basis points over US Treasury yields; the second, worth $1 billion with a 10-year maturity, carried a spread of 105 basis points over US Treasury yields.

The issuance process saw strong demand from international investors, with total subscription orders peaking at $9.1 billion, approximately 2.8 times the total size of the issuance.

The investor base was diverse and broad, with allocations distributed by investor type as follows: asset managers (39%), banks (31%), institutions and central banks (15%), hedge funds (8%), insurance companies and pension funds (6%), and other investor categories (1%).

In terms of geographic distribution, allocations were spread across the UK and Europe (36%), the Americas (23%), the Middle East and North Africa region (19%), Asia (12%), and other international markets (10%).

Commenting on the issuance, Minister of Finance Dr. Yaqoob Al-Sayed Yousef Al-Rafai stated, “This successful issuance reflects the confidence of the international investment community in Kuwait and the strength of its economic and financial foundations. We will continue to adhere to a disciplined approach in managing public finances and public debt, ensuring sustained access to capital markets, safeguarding the country’s financial resilience, and supporting sustainable economic growth and economic diversification.”

Citi, Goldman Sachs International, HSBC, JP Morgan, and SMBC served as joint global coordinators for the issuance, while Barclays, ICBC, and Morgan Stanley participated as joint bookrunners.