State of Kuwait $8 billion two tranche sovereign bond issue

20/3/2017
Investment grade bond/note issue

$ 8 billion

Completed

20/3/2017


Overview:

  • The State of Kuwait issued the country's first international bond, selling $8 billion in Reg S/Rule 144A notes in two tranches under a recently established GMTN programme. 
  • The tranches, which are listed on the Irish and London stock exchanges, were $3.5 billion 2.75% notes due 2022 and $4.5 billion 3.5% notes due 2027. 
  • Kuwait will use the proceeds of the bond to fill a budget deficit caused by lower than usual revenue from oil and gas sales. 
  • Recently it has become common for fossil fuel reliant Gulf states like Kuwait to use the debt markets to cover gaps in budgets caused by low energy prices.
  • Other recent Middle East sovereign international debt issues include Saudi Arabia's record $17.5 billion debut and Oman's $5 billion bond.
  • Citigroup, HSBC and JP Morgan were arrangers on the Kuwait's GMTN programme and joint lead managers on its bond issue. 
  • Deutsche Bank, NBK Capital, and Standard Chartered Bank were dealers on the programme and also joint lead manager on the issue. 

Ben Naylor - Regional editor

 

Read further analysis of this deal on IFLR.com

 

Jurisdictions:

United States
United Kingdom
Kuwait

Deal type:

Investment grade bond/note issue

Practice area:

Capital markets : Debt

Industry sector:

Government and public policy


Firms:

Party: Citigroup Global Markets (Joint lead manager, Arranger)

Party: HSBC (Joint lead manager, Arranger)

Party: JP Morgan Securities (Joint lead manager, Arranger)

Party: Deutsche Bank AG Na ON (Joint lead manager, Dealer)

Party: NBK Capital (Joint lead manager, Dealer)

Party: Standard Chartered (Joint lead manager, Dealer)


Party: Government of Kuwait (Issuer)


Party: Government of Kuwait (Issuer)