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Kuwait raised a collective $11.25 billion from its first dollar bond sale in eight years.
The price was tightened on the Reg S notes across all tenors at launch, with the three-year tranche raising $3.25 billion at +40 basis points (bps) over US Treasures, with a 4.016% coupon rate. It was marketed at T+70.
The five-year tranche raised $3 billion, with the price tightened to +40bps from IPTs of T+75 bps, with a 4.136% coupon rate.
The 10-year tranche saw an issue size of $5 billion, priced at T+50bps from IPTs of T+85 bps, with a 4.652% coupon rate.
Collectively, the orderbooks were in excess of $20 billion at launch, excluding JLM interest, with the three-year tranche drawing $5.1 billion, followed by the five-year books in excess of $6.1 billion and the 10-year seeing books hit $12.5 billion.
Demand for the three-year tranche was strong with American investors, at 38%, followed by MENA at 34%.
The five-year tranche saw MENA investors take the lead at 33%, followed by investors from the UK and Europe at 27%.
The 10-year tranche saw greater demand from investors from the UK and Europe, coming in at 38%, followed by MENA at 31%.
All three tranches for the Eurobond offering have a fixed coupon rate, paid semi-annually, with the three-year note maturing on 9 October 2028, with the five-year in 2030 and the 10-year in 2035.
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.
The move 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)
