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The Central Bank of Kuwait (CBK), acting on behalf of the Ministry of Finance, has issued a total of KWD 550 million ($1.77 billion) in Treasury bonds and public debt tawarruq across maturities.
The issuance included KWD 150 million in two-year instruments at a yield of 2.75%, and KWD 250 million in three-year instruments at yield of 2.7%.
It also sold KWD 100 million of five-year notes at yield of 3.25%, and KWD 50 million in seven-year paper at a yield of 3.125%.
The issuance brings year-to-date domestic debt issuances to KWD1.25 billion during FY 2026/27.
“We believe the growing borrowing (taking also into consideration private placement of $2 billion in international markets) reflects the expected widening of the budget deficit this fiscal year, given the impact of the US-Iran conflict, with Kuwait amongst the most impacted from the blockage of the Strait of Hormoz," said Mohamed Abu Basha, chief economist at Egypt-based EFG Hermes.
“We project a deficit of no less than 13-14% of GDP for the current fiscal year, given the loss of at least two-three months of petroleum income, as well as a rigid spending structure.”
In April, Kuwait approved 2026/27 budget with a deficit of KWD9.8 billion (or 20% of GDP). The OPEC member approved capital expenditure of around KWD 3 billion, nearly 37% higher than in the previous budget.
(Reporting by Brinda Darasha; editing by Seban Scaria)
