Kuwait vows to be ‘pru­dent’ bor­rower af­ter rais­ing US$8b

New Straits Times - - Business World -

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

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