Kuwait Cuts Its Borrowing Needs With Debut $8bn Bond

Kuwait this week raised $8bn in a debut Eurobond slated to cover its expected budget deficit for the 2017-18 year starting 1 April.

The issue was three times oversubscribed, attracting $29bn in bids. Kuwait previously said it would seek to raise $10bn from its debut foray in the debt market. But with oil prices firmly above $50/B since December, the amount needed by the government was re-estimated at $8bn.

Kuwait was fortuitous in the timing of the issue, coming as it did just ahead of the US Federal Reserve’s 16 March decision to edge up its benchmark interest rate from 0.75% to 1%; a move which would have pushed up the Kuwait bond’s pricing. (CONTINUED - 636 WORDS)

DATA INSIDE THIS ARTICLE

table GCC 2016-17 International Bonds Issues