Kuwait successfully issues $3.25 billion in international bonds... in two tranches - Sarmad

Kuwait successfully issued bonds in global debt markets with a total value of $3.25 billion on October 19.

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

The issuance process saw strong demand from international investors, with total subscription orders peaking at $9.1 billion, equivalent to 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 percent, banks 31 percent, institutions and central banks 15 percent, hedge funds 8 percent, insurance companies and pension funds 6 percent, and other investor categories 1 percent.

Geographically, allocations were distributed as follows: the United Kingdom and Europe 36 percent, the Americas 23 percent, the Middle East and North Africa region 19 percent, Asia 12 percent, and other international markets 10 percent.

In this context, Minister of Finance Yaqoub 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 follow a disciplined approach in managing public finances and public debt, ensuring sustained access to capital markets, safeguarding the state’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.