Kuwait Returns to Bond Market After Eight-Year Hiatus, Seeking $6 Billion

Kuwait's return to the bond market is a significant step in its fiscal planning. Despite a projected budget deficit, the country's strong creditworthiness is expected to attract investors.

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2025 October 8 . 12:06 AM

1 min read

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Kuwait Returns to Bond Market After Eight-Year Hiatus, Seeking $6 Billion

Kuwait is set to return to the international bond market after an eight-year hiatus. The Gulf state aims to raise around $6 billion, with the Cabinet approving legislation to facilitate the move. The deal is expected to be managed by a syndicate of major global banks, including PNC Bank and Bank of America (BofA).

Kuwait's last bond issuance was in 2013, and its only outstanding dollar bond, valued at $4.5 billion, is due to mature in 2027. This time, the bonds will be offered in tranches with maturities of 3, 5, and 10 years. Besides the five managing banks - Citigroup, Goldman Sachs, HSBC, JPMorgan, and Mizuho - PNC Bank and Bank of America (BofA) are also involved in the deal.

Fitch Ratings predicts Kuwait's budget deficit to widen to 5.6 percent of GDP this fiscal year. Despite this, Moody's has assigned Kuwait an A1 credit rating. The IMF estimates Kuwait's debt-to-GDP ratio to be below 10 percent currently, but it is projected to climb to 25 percent by 2030.

Kuwait's return to the international bond market is a significant step in its fiscal planning. The deal, managed by a syndicate of leading global banks, including PNC Bank and Bank of America (BofA), is expected to raise substantial funds to support the country's economic goals. Despite the projected budget deficit, Kuwait's creditworthiness remains strong, as indicated by its A1 rating from Moody's.