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Kuwait has announced initial price thoughts (IPTs) for its three-tranche dollar-denominated bond issuance, marking its return to international debt markets after an eight-year hiatus.
The Reg S three-year notes are being marketed at +70 basis points over US Treasuries, with a maturity date of 9 October 2028.
The five-year tranche has IPTs in the T+75 bps area with a 2030 maturity, followed by the 10-year tranche in the T+85 bps area and a 2035 maturity.
All three tranches will offer fixed coupon rate, paid semi-annually.
Kuwait, rated A1 (Stable) by Moody’s, A+ (Stable) by S&P and AA- (Stable) by Fitch, has mandated Citi, Goldman Sachs International, HSBC, JP Morgan and Mizuho as Joint Global Coordinators, Joint Lead Managers and Bookrunners.
Goldman Sachs International is the billing and delivery bank on the three-year tranche, with JP Morgan listed on the five- and 10-year tranches.
Bank of China and Industrial and Commercial Bank of China (ICBC) will act as Passive Joint Lead Managers on the transaction.
The bond issuance is being arranged through Ministry of Finance and will come under Kuwait’s Global Medium Term Note Programme, with an expected issue rating of A+ (S&P), AA- (Fitch).
The notes will be listed on the London Stock Exchange’s Main Market.
Kuwait last tapped into the international debt markets in 2017. In June, officials indicated that the Gulf state could borrow between $10 billion and $20 billion during 2025–2026 to cover fiscal deficits. This follows the approval of a debt law in March, allowing the government to borrow up to $99 billion over 50 years to finance budget shortfalls and infrastructure projects.
(Writing by Bindu Rai, editing by Brinda Darasha)
