Kuwait’s 150 million dinar bond issue draws 386 million dinars in bids
. . . as bond bids exceed offer by 2.57 times
Kuwait has raised 150 million dinars through a seven-year issuance of treasury bonds and public debt securities, with bids reaching 386 million dinars, reflecting demand more than 2.5 times the amount offered.
The Central Bank of Kuwait announced that the issuance was conducted on behalf of the Ministry of Finance through a competitive auction, carrying a uniform yield of 4.125 percent. The total value of bids submitted reached 386 million dinars, equivalent to 2.57 times the issuance value.
According to the issuance data, investors submitted 32 competitive bids, of which 16 were accepted. The median yield stood at 4.188 percent, while the highest bid yield reached 4.875 percent and the lowest accepted yield was 2 percent.
The bonds and public debt securities are scheduled to mature on October 19, 2033. Returns will be paid semi-annually under a variable-yield formula linked to the yield on the Central Bank of Kuwait’s six-month bonds, plus a specified margin.
The issuance provides the government with an additional source of domestic financing while offering investors an opportunity to hold government debt securities with a seven-year maturity. The level of bids submitted also indicates that demand exceeded the amount offered, although the auction figures alone do not establish the broader direction of market sentiment.
