Kuwait vows to be ‘prudent’ borrower after raising US$8b
DUBAI: Kuwait will be a “prudent” borrower after raising US$8 billion (RM35.6 billion) in its first international bond sale at a lower price than other oil-rich Gulf Arab states seeking to plug budget deficits, says a top government official.
The country sold US$3.5 billion in five-year notes at 75 basis points over similar-maturity United States Treasuries and US$4.5 billion in 10-year bonds at a 100 basis-point spread, according to a person familiar with the deal .
The offer attracted US$29 billion in bids, allowing Kuwait to sell at a lower rate than Qatar, Abu Dhabi and Saudi Arabia last year.
“We had strong demand from the US, MENA (Middle East and North Africa), and Europe,” said Deputy Prime Minister Anas alSaleh on Monday in London.
“We would continue to be a rational, prudent borrower, making sure that we maintain our current credit rating and the successful secondary performance of the existing issue.”
The deal was the third-largest from the Gulf region, following Saudi Arabia’s record US$17.5 billion and Qatar’s US$9 billion sales last year. Bloomberg