Central Bank of Kuwait Offers Local Government Debt Instruments Worth KD 150 Million

The Central Bank of Kuwait issued local government debt instruments on Wednesday, consisting of treasury bills and public debt operations, on behalf of the Ministry of Finance, through a competitive auction with a uniform yield of 2.5% and a total value of 150 million Kuwaiti dinars ($483 million). The issuance attracted significant interest from local financial institutions, with bids exceeding the offering size by 3.61 times, totaling 541.7 million dinars ($1.746 billion). A total of 30 bids were submitted, of which 8 were accepted.

The issuance reflects continued confidence in sovereign debt instruments and their ability to attract local liquidity amid global market volatility. The entire offering was allocated through the competitive tranche, without recourse to the non-competitive tranche, with a maximum allocation limit of 60 million dinars per participant to enhance distribution efficiency.

This brings the number of issuances executed from the beginning of 2026 until July 22 to 12 issuances totaling 1.7 billion dinars, compared to just three issuances totaling 350 million dinars during the same period last year. According to the latest data from the Central Bank, the total holdings of local banks in debt instruments reached approximately 3.25 billion dinars in May, up from around 2.25 billion dinars in December.