Kuwait has sent re­quest for int’l bond pro­pos­als

Kuwait Times - - FRONT PAGE -

Kuwait has sent a re­quest for pro­pos­als for a po­ten­tial de­but in­ter­na­tional bond, ac­cord­ing to sources. The sovereign is ex­pected to is­sue next year, most likely in the US dol­lar mar­ket, con­tin­u­ing the spree of Gulf sovereign bond deals. In Oc­to­ber, bankers said that Kuwait was in no rush to fund over­seas, ac­cord­ing to Reuters. Fi­nance Min­is­ter Anas Al-Saleh had said in July the gov­ern­ment planned to sell as much as $10 bil­lion in con­ven­tional and Is­lamic bonds in in­ter­na­tional mar­kets to help plug Kuwait’s bud­get deficit for the cur­rent fis­cal year, which will end on March 31.

Sev­eral Gulf sov­er­eigns have sold bonds in the in­ter­na­tional mar­kets this year, led by Saudi Ara­bia’s record break­ing $17.5 bil­lion triple-tranche of­fer­ing in Oc­to­ber. Other no­table deals from Gulf sov­er­eigns in 2016 in­clude Oman’s re­turn af­ter a 20-year ab­sence, Qatar’s $9 bil­lion trade and Abu Dhabi’s $5 bil­lion trans­ac­tion. Kuwait, how­ever, will be a new name for in­vestors, though cor­po­rates and banks from the coun­try have out­stand­ing US dol­lar bonds.

This year hold­ing com­pany KIPCO printed a $500 mil­lion 2023 bond at a yield of 5 per­cent in March, while Bur­gan Bank printed the first ever se­nior US dol­lar deal from a Kuwaiti bank in Septem­ber. Bur­gan, Boubyan Bank and Na­tional Bank of Kuwait also have out­stand­ing sub­or­di­nated bonds. Tim­ing for the sovereign’s de­but is­suance re­mains un­clear. — Reuters

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