Kuwait issues $6bn in US dollar-denominated sovereign bonds

KUWAIT CITY, July 23: The State of Kuwait issued $6 billion in US Dollar denominated sovereign bonds in three tranches in international capital markets, reports Al- Seyassah daily. This is the most significant sovereign financing transaction in global markets this year, reflecting the continuous confidence of international investors in Kuwait and an affirmation of its strong credit rating and financial position. The issuance comprised three tranches -- $3 billion with three-year maturity, $1.5 billion with five-year maturity, and $1.5 billion with 10-year maturity. These tranches are priced at final spreads of 70, 75 and 85 basis points above comparable US Treasuries respectively.

The issuance witnessed exceptional investor demand, as the total order book exceeded $18 billion -- more than three times the issuance size. This is one of the largest combined order books for a multi-tranche sovereign bond issuance in 2026. Investors from the Americas accounted for 48 percent of the issuance, followed by the United Kingdom and Europe at 28 percent, MENA region at 16 percent and Asia at four percent. Investors from other international markets constituted the remaining four percent of the total issuance, proving the broad investor base and geographical distribution of demand for Kuwaiti sovereign bonds. Finance Minister Yaqoub Al-Sayed Yousef Al-Rifai stated that the resounding success of this issuance is a manifestation of the continuous confidence of international investors in the State of Kuwait and a confirmation of the strength of its credit rating and financial position.