Kuwait raises $3.25 billion in three- and 10-year dollar bonds
. . . amid strong investor demand
Kuwait has raised $3.25 billion through a two-tranche, dollar-denominated international bond issuance, attracting subscription orders exceeding $7.8 billion and reflecting strong investor demand for the country’s sovereign debt.
According to data from fixed-income news service IFR, the issuance comprised a three-year tranche worth $2.25 billion with a yield of 5.619 percent and a 10-year tranche worth $1 billion with a yield of 6.198 percent. The three-year bonds were priced at 75 basis points above US Treasury securities, below the initial guidance of 105 basis points. The 10-year tranche was priced at 105 basis points above US Treasuries, compared with initial guidance of 130 basis points.
According to Zawya, investor orders exceeded $7.8 billion, including more than $4.6 billion for the three-year tranche and over $3.2 billion for the 10-year tranche. The total orders were approximately 2.4 times the amount raised. The pricing below initial guidance reflects the strong demand for both tranches, allowing Kuwait to secure funding at spreads tighter than those indicated at the outset of the offering.
Settlement is expected on October 26, 2026, and the bonds are scheduled to be listed on the London Stock Exchange’s main market. The bonds are expected to receive ratings of AA- from Fitch Ratings and S&P Global Ratings, according to the report.
The issuance represents Kuwait’s access to international debt markets through two maturities, providing investors with different investment horizons while securing $3.25 billion in dollar-denominated financing.
