KUWAIT: Kuwait announced the issuance of sovereign bonds worth $11.25 billion, divided into three tranches, marking its first successful return to global debt markets since 2017. The issuance attracted overwhelming investor demand and was priced at “one of the tightest spreads ever for a sovereign issuer in emerging markets”.
Kuwait passed a new public debt law in March, after the previous one expired years ago. That raised the borrowing ceiling to KD 30 billion ($98.24bn) from KD 10 billion previously and allowed for the possibility of longer borrowing terms.
In a press statement on Wednesday, the ministry of finance said the issuance comprised a $3.25 billion tranche with a three-year maturity at (+40) basis points over US Treasuries, a $3 billion tranche with a five-year maturity at (+40) basis points, and a $5 billion tranche with a 10-year maturity at (+50) basis points. The ministry noted that “these spreads are significantly lower than Kuwait’s inaugural sovereign issuance in 2017”.
The ministry added that the offering was oversubscribed by 2.5 times, with the order book reaching $28 billion. More than 66 percent of allocations went to investors outside the Middle East and
North Africa region, including 26 percent from the United States, 30 percent from Europe and the United Kingdom and 10 percent from Asia.
Acting Minister of Finance, Minister of Electricity, Water and Renewable Energy, and Minister of State for Economic Affairs and Investment Dr Subaih Al-Mukhaizeem said the historic issuance reflects global market confidence in Kuwait’s financial strength, prudent policies and solid reserves. He added that the strong demand and competitive pricing reaffirm Kuwait’s position as a distinguished sovereign issuer, stressing that the issuance not only meets financing needs but also strengthens Kuwait’s presence in global markets and supports its partnerships with international investors in line with the New Kuwait 2035 vision.
Kuwait’s issuance is considered one of the largest sovereign bond offerings globally in 2025, generating one of the biggest order books this year — underscoring investor confidence in the fundamentals of Kuwait’s economy and its long-term reform program. The issuance was jointly led by Citi, Goldman Sachs International, HSBC, JPMorgan and Mizuho as global coordinators, with the participation of Bank of China and Industrial and Commercial Bank of China as passive joint bookrunners. — Agencies
