RIYADH: Kuwait secured $11.25 billion through a three-part sovereign bond as it returned to global debt markets for the first time in eight years.
The move drew strong demand and was priced at some of the tightest spreads for an emerging-market issuer this year.
The deal comprised $3.25 billion of three-year notes, $3 billion of five-year bonds, and $5 billion of 10-year debt. The tranches are priced at 40 basis points over Treasuries for the shorter maturities and 50 basis points for the 10-year, tighter than Kuwait’s 2017 debut, according to a press release.
The transaction was 2.5 times oversubscribed, with the order book peaking at $28 billion. More than 66 percent of the allocations went to investors outside the Middle East and North Africa region, including 26 percent from the US, 30 percent from Europe and the UK, and 10 percent from Asia.
The broad investor base reflects Kuwait’s increasing integration into global capital markets and the strength of its credit fundamentals.
Kuwait’s Minister of Finance, Sobeen Al-Mukhaizim, said the issuance underscores investor confidence in “Kuwait’s fiscal strength, prudent policies, and enduring financial buffers.”
He added: “This transaction reinforces Kuwait’s credibility in global markets and deepens our partnership with international investors as we advance our Vision 2035.”
A recent report by Fitch Ratings affirmed Kuwait’s long-term foreign-currency issuer default rating at AA- with a stable outlook, underpinned by the country’s large financial buffers and robust external balance sheet.
However, the agency also highlighted risks stemming from Kuwait’s reliance on hydrocarbons, a large public sector, and comparatively weak governance indicators.
The latest offering is one of the largest sovereign bond deals of 2025 and includes one of the biggest order books of the year.
The transaction was led by Citi, Goldman Sachs International, HSBC, J.P. Morgan, and Mizuho as Joint Global Coordinators. Bank of China and Industrial and Commercial Bank of China acted as Passive Joint Lead Managers.
The issuance follows the passage of Kuwait’s new public debt law in March, which lifted the borrowing ceiling to 30 billion Kuwaiti dinars ($98.1 billion) and enabled longer-term borrowing, a report by Reuters found.
