publish time

06/05/2024

author name Arab Times

publish time

06/05/2024

KUWAIT CITY, May 6: Kuwait is set to settle local bonds totaling 160 million dinars during May and August 2024. These bonds were initially issued by the Ministry of Finance in 2014 and 2017 to address the state’s general budget deficit, reports Al-Anba daily quoting responsible sources. In May 2024, the first batch of bonds, valued at 10 million dinars, was repaid. This includes traditional bonds offered on May 1, 2014, and Islamic and conventional bonds issued on May 10, 2017. The remaining 150 million dinars will be repaid by August 21, 2024, comprising 40 million dinars in Islamic bonds and 60 million dinars in conventional bonds.

Furthermore, Kuwait holds global bond obligations worth 1.370 billion dinars, due for repayment on March 20, 2027. These global bonds, issued on March 20, 2017, carry a fixed interest rate of 3.5%. The total debt, encompassing both local and global bonds, amounts to approximately 1.580 billion dinars. Kuwait has been strategically borrowing externally since 2014 to mitigate the financial deficit amid declining oil prices.

The proceeds from these bonds, acquired by the General Reserve Fund, have been instrumental in financing various governmental expenses, including operational costs. The Kuwait Investment Authority is committed to depositing the necessary liquidity to cover bond repayments on the specified dates without delay. This liquidity will be sourced from the Authority’s bank accounts, without affecting strategic investments, and will be generated through various investments, including interest on bank deposits, bonds, Sukuk, and foreign real estate.