Ministry of Finance: Issuance of $6 billion in US dollar-denominated international sovereign bonds
The Ministry of Finance announced on Thursday that the State of Kuwait has completed the issuance of $6 billion in international sovereign bonds denominated in U.S. dollars across three tranches in global capital markets, marking one of the most prominent sovereign financing operations in global markets this year.
In a press release, the Ministry stated that this issuance reflects the sustained confidence held by international investors in Kuwait and underscores the strength of its credit profile and the robustness of its financial position.
The issuance comprised three tranches: $3 billion for a three-year maturity, $1.5 billion for a five-year maturity, and $1.5 billion for a ten-year maturity. They were priced at final spreads of 70, 75, and 85 basis points above comparable U.S. Treasury securities, respectively.
The Ministry noted that the issuance attracted exceptional investor interest, with total order book demand exceeding $18 billion, representing more than three times the size of the offering. This set a record for one of the largest aggregated order books for multi-tranche sovereign bond issuances in 2026, reflecting deep global demand for Kuwaiti sovereign bonds and entrenched confidence in its financial soundness and credit standing.
The issuance attracted a diverse base of international investors. Investors from the Americas accounted for 48 percent of the issuance, followed by the United Kingdom and Europe with 28 percent, the Middle East and North Africa region with 16 percent, Asia with 4 percent, and other international markets with 4 percent.
Commenting on the issuance, Minister of Finance Dr. Yaqoub Al-Rafai stated that the significant success of this offering reflects the continued confidence international investors place in Kuwait, reaffirming the strength of its credit position, the robustness of its financial health, and the soundness of its public financial management approach.
Al-Rafai added that the order book, which exceeded $18 billion, serves as clear evidence of the issuance’s success and enhances Kuwait’s status as a reliable sovereign issuer in international capital markets.
He further noted that through this issuance across three different maturities, the state succeeded in diversifying funding sources, enhancing liquidity along the sovereign yield curve, and developing a reference yield curve that will support the pricing of future sovereign, quasi-sovereign, and private sector issuances.
The Minister affirmed that the Ministry of Finance will continue to implement its public debt management strategy in accordance with international best practices, through prudent debt management, enhanced transparency in investor communications, and maintaining effective and sustainable access to international capital markets, thereby supporting the state’s financial sustainability.
The issuance was led by Citibank, Goldman Sachs International, HSBC, JPMorgan, and Standard Chartered as joint global coordinators. Mizuho, Crédit Agricole CIB, and SMBC participated as joint bookrunners, while Industrial and Commercial Bank of China (ICBC) participated as a non-active joint bookrunner.
