Kuwait city: The State of Kuwait announced the issuance of $11.25 billion worth of sovereign bonds, marking its first successful return to the global bond market since 2017. The Ministry of Finance stated that the bonds were divided into three tranches: a $3.25 billion tranche with a three-year maturity at a 40+ basis point over US Treasury, and another valued at $3 billion with a five-year maturity at a 50+ basis point over the US Treasury.
According to Kuwait News Agency, the differences in basis points are lower than those of the first sovereign issuance in 2017. The ministry revealed that the subscription exceeded supply by 2.5 times, with orders reaching $28 billion. More than 66 percent of allocations were made to investors outside the Middle East and North Africa, with 26 percent in the US, 30 percent in Europe and the United Kingdom, and ten percent in Asia.
The statement included remarks from Dr. Sabeeh Al-Mukhaizeem, the Minister of Electricity, Water, Renewable Energy, and the Acting Minister of Finance, Minister of State for Economic Affairs and Investment. He expressed that this issuance demonstrated international market confidence in Kuwait's financial strength, policies, and reserves. Dr. Al-Mukhaizeem noted that the high demand and competitive pricing underscored Kuwait's position as a notable sovereign issuer and that the issuance would enhance Kuwait's standing in international markets and support partnerships with international investors, aligning with Kuwait Vision, Neo Kuwait 2035.
The Kuwaiti issuance was the largest sovereign issuance at the global level in 2025, featuring one of the biggest order records of the year. This highlighted investor confidence in the Kuwaiti economy and its reform program over the long term. The issuance was coordinated by Citi Bank, Goldman Sachs International, HSBC, JPMorgan, and Mizuho Bank, with support from the Bank of China and the Industrial and Commercial Bank of China as non-active managers.