Kuwait taps market with KD 200 million debt issue over 7 years
The pricing for the issuance — the Central Bank’s tenth domestic public debt offering — has been set at a variable rate of 0.875% above the base rate.
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With the latest issuance, Kuwait has raised KD 1.8 billion under the Financing and Liquidity Law, nearing its KD 2 billion local borrowing target for 2025-2026, meaning 90 percent of the planned amount is secured.
The Central Bank of Kuwait has asked local banks to submit subscription requests for the first tranche of a new public debt issue, which includes bonds and Murabaha instruments. The government plans to raise KD 200 million over seven years, Al Rai newspaper reported.
According to informed sources, the pricing for this issuance — the Central Bank’s tenth domestic public debt offering — has been set at a variable rate of 0.875% above the base rate. This marks the tenth sovereign debt issue since the launch of the public debt program earlier this year.
With this offering, the total raised under the Financing and Liquidity Law has reached KD 1.8 billion, out of a targeted KD 2 billion to be borrowed locally during the 2025-2026 fiscal year. In other words, 90% of the planned amount has already been secured.
Sources added that demand is expected to exceed supply by more than ten times, reflecting excess liquidity in the banking sector and continued confidence in Kuwait’s public finances.
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