KUWAIT, Oct 1 (KUNA) -- The State of Kuwait declared on Wednesday issuing USD 11.25 billion worth of sovereign bonds in the first successful comeback to the global bond market since 2017.
The Ministry of Finance, in a statement, indicated that the floated bonds were divided into three tranches, noting that the issuance is composed of a tranche worth USD 3.25 billion with a three-year maturity and a 40+ basis point over US Treasury, another valued at USD three billion with five-year maturity at 50+ basis point over the US Treasury.
These differences are lower than the first sovereign issuance in 2017.
Subscription has exceeded the supply by 2.5 times, where the orders record posted USD 28 billion, the ministry statement said, adding that more than 66 percent of the allocations shifted to investors outside the Middle East and North Africa, accounting to 26 percent in the US, 30 percent in Europe and the United Kingdom and ten percent in Asia.
The statement quoted the Minister of Electricity, Water, Renewable Energy and the Acting Minister of Finance, Minister of State for Economic Affairs and Investment, Dr. Sabeeh Al-Mukhaizeem, as saying this historic issuance embodied confidence of the international markets in Kuwait's financial power, its wise policies and solid reserves.
He added that the high demand and the competitive pricing reflected Kuwait's status as a distinctive sovereign source, clarifying that the issuance would not solely meet financing needs, but also boost Kuwait's stature in the international markets and support its partnerships with the international investors in line with Kuwait vision, neo Kuwait 2035.
The State of Kuwait issuance was the largest sovereign issuance at the global level in 2025, comprising one of the biggest order records this year, thus underscoring investors' confidence in the bases of the Kuwaiti economy and the reform program on the long run.
The issuance was masterminded by Citi Bank, Goldman Sachs International, HSBC, JPMogran, Mizuho Bank, as joint international coordinators, in addition to participation on part of the Bank of China, the Industrial and Commercial Bank of China as non-active managers. (end) ak.rk