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Kuwait / Emirates Business
The State of Kuwait on Wednesday announced that it has successfully issued its inaugural dual-tranche USD 8 billion bond offering into the international debt markets.
Notes due in 2022 (the five-year Bonds) and for the value of USD 3.5 billion and notes due in 2027 (the 10-year Bonds) for the value of USD 4.5 billion. The five-year bond was successfully priced on March 13 2017 at a yield of 2.887%, the 10-year bond with a yield of 3.617% with a spread of 75bps on the five-year Bonds and 100bps on the 10-year Bonds respectively, over the relevant US Treasury securities.
The bonds were significantly oversubscribed with 778 investor orders totaling over USD 29 billion, with strong demand from both international and regional accounts.
The success of Kuwait’s inaugural bond issuance came after a week-long roadshow that covered two continents and four cities including London, New York, Boston and Los Angeles. The Kuwait delegation, led by Anas Alsaleh, Deputy Prime Minister & Minister of Finance of Kuwait, met with over 100 investors and included senior members of the Kuwait Government.
The transaction was also successful in achieving a diversified mix in terms of investor type and geography.