The Ministry of Finance, via the Central Bank of Kuwait, raised an additional KD 150 million in its fifth public debt issuance to local banks, bringing total domestic borrowing under the Financing and Liquidity Law to KD 1 billion.
The funds were secured through bonds and Murabaha instruments with a two-year maturity and a variable interest rate of 0.25–0.375% above the Central Bank’s base rate.
Kuwaiti banks showed overwhelming interest in the latest public debt tranche, submitting subscription requests exceeding the offering amount by nearly tenfold.
No fixed allocation was set for individual banks or sectors, with shares distributed based on excess liquidity. The high demand reflects the banking sector’s robust liquidity and capital position.
With the latest issuance, the Ministry of Finance has completed half of its KD 2 billion borrowing goal from the local market for fiscal year 2025–2026.
The funds raised are earmarked for development projects in infrastructure, health, education, and energy, as well as reinforcing Kuwait’s general reserve.
In parallel to domestic borrowing, the Ministry of Finance is preparing a promotional campaign to raise approximately $10 billion from international markets.
The offering could be issued in one or multiple tranches, starting in Asian markets and concluding in Europe. The exact amount and timing will depend on Kuwait’s financial needs, global market conditions, and its strong credit profile.
