Kuwait completed its first dollar bond offering in eight years, raising a total of $11.25 billion from a three-part sale. Strong demand led to the prices being tightened across all tenors compared to initial marketing levels.
The final deal allocation and pricing were:
3-Year Tranche: $3.25 billion at 4.016% (40 basis points over US Treasuries).
5-Year Tranche: $3 billion at 4.136% (40 basis points over US Treasuries).
10-Year Tranche: $5 billion at 4.652% (50 basis points over US Treasuries).
Total investor demand for the Reg S notes exceeded $20 billion at launch, with the 10-year notes attracting the highest interest. Demand for the shorter 3-year notes was dominated by American investors, while UK/European and MENA investors were the largest buyers of the 5- and 10-year tranches.
The issuance, which will be listed on the London Stock Exchange and is expected to receive an A+ or AA- rating, was led by global banks including Citi, Goldman Sachs, HSBC, JP Morgan, and Mizuho. This sale aligns with Kuwait’s recent approval of a new debt law that allows borrowing to cover fiscal deficits.
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