Kuwait issues $6bn in US dollar-denominated sovereign bonds

The State of Kuwait has successfully re-entered the global debt markets with a significant sovereign bond issuance, raising $6 billion in U.S. dollars. This marks the country's first return to international capital markets since 2017 and is being hailed as the most substantial sovereign financing transaction globally this year.

The issuance was structured in three tranches: $3 billion with a three-year maturity, $1.5 billion with a five-year maturity, and another $1.5 billion with a 10-year maturity. These bonds were priced at final spreads of 70, 75, and 85 basis points above comparable U.S. Treasuries, respectively.

Investor appetite for Kuwaiti debt was exceptionally strong, with the total order book surpassing $18 billion. This figure represents more than three times the total value of the bonds issued, underscoring robust demand and confidence from international investors. The demand was geographically diverse, with investors from the Americas accounting for 48 percent, followed by the United Kingdom and Europe at 28 percent, the MENA region at 16 percent, and Asia at 4 percent.

Kuwait's Finance Minister, Yaqoub Al-Sayed Yousef Al-Rifai, stated that the success of the issuance is a clear indicator of sustained international investor confidence in Kuwait. He further affirmed that it confirms the strength of the nation's credit rating and its solid financial standing in the global economy.

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The resounding success of this issuance is a manifestation of the continuous confidence of international investors in the State of Kuwait and a confirmation of the strength of its credit rating and financial position.