RIYADH: Kuwait secured $11.25 billion through a three-part sovereign bond as it returned to global debt markets for the first time in eight years.
The move drew strong demand and was priced at some of the tightest spreads for an emerging-market issuer this year.
The deal comprised $3.25 billion of three-year notes, $3 billion of five-year bonds, and $5 billion of 10-year debt. The tranches are priced at 40 basis points over Treasuries for the shorter maturities and 50 basis points for the 10-year, tighter than Kuwait’s 2017 debut, according to a press release.
The transaction was 2.5 times oversubscribed, with the order book peaking at $28 billion. More than 66 percent of the allocations went to investors outside the Middle East and North Africa region, including 26 percent from the US, 30 percent from Europe and the UK, and 10 percent from Asia.
The broad investor base reflects Kuwait’s increasing integration into global capital markets and the strength of its credit fundamentals.
