Kuwait Raises $11.25bn in Landmark Global Bond Market Return

Kuwait successfully issued $11.25 billion in sovereign bonds, marking its first return to the global bond market since 2017. The issuance was split into three tranches with maturities of three, five, and ten years, offering spreads significantly lower than the 2017 issuance, reflecting strong investor confidence and competitive pricing. The bond sale was oversubscribed by 2.5 times, with orders totaling $28 billion, and over 66% of the allocations going to investors outside the Middle East and North Africa, including significant participation from the US, Europe, and Asia. This issuance follows the passage of a new public debt law raising Kuwait's borrowing ceiling and allowing longer borrowing terms, facilitating the country's efforts to finance its budget and support economic diversification under the New Kuwait 2035 vision. Despite concerns about governance and reliance on oil revenues, Kuwait's low outstanding debt and large sovereign wealth assets helped reassure investors. The bonds were managed by major global banks, including Citi, Goldman Sachs, HSBC, JPMorgan, and Mizuho, and the issuance is seen as bolstering Kuwait's presence in international financial markets.