The State of Kuwait has successfully executed a major Kuwait bond issuance. This $11.25 billion sovereign bond sale marks the country’s first return to global debt markets since 2017. Consequently, the offering attracted massive demand from international investors. The government priced the bonds at very tight spreads. This indicates strong market confidence and a successful Kuwait bond issuance.
This landmark transaction became possible after new legislation passed. Kuwait’s parliament approved a new public debt law in March. This law significantly raised the country’s borrowing ceiling. The limit increased to KD 30 billion from a previous KD 10 billion. Furthermore, the new law allows for longer borrowing terms.
The Ministry of Finance provided specific details on Wednesday. The Kuwait bond issuance comprises three separate tranches. First, a $3.25 billion tranche matures in three years. Second, a $3 billion tranche matures in five years. Finally, a large $5 billion tranche matures in ten years. The ministry proudly noted these spreads are much lower than its 2017 debut. This means Kuwait will pay less in interest.
Investor appetite for the bonds was exceptionally strong. The entire offering was oversubscribed 2.5 times. The total order book reached an impressive $28 billion. A significant majority of allocations went to investors outside the Middle East. For instance, American investors received 26% of the bonds. European and UK investors together took a large 30% share. Asian investors accounted for another 10%.
Acting Minister of Finance Dr. Subaih Al-Mukhaizeem commented on the success. He said this historic sale reflects global confidence in Kuwait’s financial strength. He also pointed to the nation’s prudent policies and solid reserves. The strong demand, he added, reaffirms Kuwait’s position as a distinguished sovereign issuer. This issuance meets the state’s financing needs. It also strengthens Kuwait’s presence in international markets. Ultimately, it supports partnerships with global investors. This strategic move aligns perfectly with the New Kuwait 2035 vision.
Financial experts consider this one of the largest sovereign bond offerings globally in 2025. The massive order book underscores deep investor belief in Kuwait’s economic fundamentals. It also shows support for the country’s long-term reform program. A consortium of major global banks jointly led the transaction. These coordinators included Citi, Goldman Sachs International, and HSBC. JPMorgan and Mizuho also served as global coordinators. The Bank of China and Industrial and Commercial Bank of China participated as joint bookrunners.
