Kuwait successfully raised billion in its first dollar bond sale in eight years, issuing a three-tranche bond that was met with “massive demand,” peaking at over billion in orders. HSBC’s Nour Safa highlighted the success, noting that Kuwait achieved “one of the tightest spreads ever” for an Emerging Market sovereign.
The sale was strategically timed following the approval of a new debt law that permits the government to borrow up to billion over 50 years. This borrowing will finance budget deficits and accelerate infrastructure projects, signaling Kuwait’s move toward economic diversification.
The bonds attracted a diverse, high-quality international investor base, with two-thirds () of the allocation going outside the MENA region. Notable demand came from real money asset managers, central banks, pension funds, and investors in the UK and Europe. Safa also pointed out a marked increase in participation from Asian investors who are actively diversifying their portfolios away from challenging domestic markets and US assets, with Asia accounting for of the -year tranche demand.
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