DEAL: Kuwait’s first sovereign bond

Author: Lizzie Meager | Published: 29 Mar 2017

Kuwait has borrowed from the international capital markets for the first time, closing an $8 billion US dollar deal last week.

Kuwait posted a budget deficit in 2016 for the first time in 16 years
Aside from a loan during the first Gulf War the State of Kuwait has simply never needed to borrow funds. But much like other Gulf Cooperation Council (GCC) countries, the enduring oil price crash saw the country post its first ever budget deficit in 2016 in 16 years.


The government issued the dual-tranche bonds via a recently established global medium term note (GMTN) programme to allow it to continue tapping the international markets when  conditions are suitable. It also established a debt management unit to coordinate the issuance of future external debt.

The bonds are dual-listed on the Irish and London stock exchanges; a popular option for GCC debt.

“In part the government, through the...


 

 

close Register today to read IFLR's global coverage

Get unlimited access to IFLR.com for 7 days*, including the latest regulatory developments in the global financial sector, updated daily.

  • Deal Analysis
  • Expert Opinion
  • Best Practice

register

*all IFLR's global coverage published in the last 3 months.

Read IFLR's global coverage whenever and wherever you want for 7 days with IFLR mobile app for iPad and iPhone

"The format of the Review has changed over the years; the high quality of its substantive content has not."
Lee C Buchheit, Cleary Gottlieb

register