Khaberni - Kuwait announced a successful return to the global debt markets through a historic issuance of sovereign bonds valued at $11.25 billion, distributed over three tranches in its first return to the markets since 2017. The issuance witnessed significant investor demand and was priced at one of the lowest spreads ever for a sovereign issuer in emerging markets.
The Ministry of Finance stated in a statement received by Al-Qabas today, that the issuance consists of a tranche amounting to $3.25 billion with a 3-year term at +40 basis points above the US Treasury, a tranche amounting to $3 billion with a 5-year term at +40 basis points above the US Treasury, and a tranche amounting to $5.0 billion for a 10-year term at +50 basis points above the US Treasury rate, with these spreads being notably lower than Kuwait's first sovereign issuance in 2017.
The subscription exceeded the offered amount by 2.5 times, with the order book reaching $28 billion, while more than 66% of the allocations went to investors from outside the Middle East and North Africa region, represented by 26% from the United States, 30% from Europe and the United Kingdom, and 10% from Asia.
On this occasion, the Minister of Electricity, Water and Renewable Energy, Minister of Finance, and Minister of State for Economic and Investment Affairs Dr. Sabeeh Abdulaziz Al-Muhaisen said: "This historic issuance embodies the global markets' trust in Kuwait's financial strength, wise policies, and solid reserves. The size of the demand and competitive pricing reflect Kuwait's status as a distinguished sovereign issuer. This issuance is not only about meeting financing needs but also enhances Kuwait's position in the global markets and supports its partnerships with international investors as part of the journey to achieve Vision 2035."
The State of Kuwait's issuance is one of the largest sovereign issuances globally in 2025, gathering one of the largest order books this year, which confirms the investors’ confidence in the fundamentals of the Kuwaiti economy and its long-term reform program. The issuance was led by Citi, Goldman Sachs International, HSBC, J.P. Morgan, and Mizuho as global joint coordinators, with participation from Bank of China and the Industrial and Commercial Bank of China as inactive joint managers.
