Kuwait raises $8 bln in first foreign bond sale

The sun sets over the Kuwait City skyline (File Photo: AFP)

Deficit-hit Kuwait has raised $8 billion in its first international bond issue, the finance ministry said on Wednesday, as it seeks to make up a budget shortfall resulting from low oil prices.

The debt sale consisted of $3.5 billion in five-year bonds and $4.5 billion in 10-year bonds, the ministry said in a statement.

After posting healthy surpluses for 16 years in a row, the oil-rich Gulf state posted a budget deficit in 2015/2016 and is projecting another shortfall of $29 billion this fiscal year, which ends on March 31.

The emirate had previously sold bonds on the domestic market worth more than $5 billion.

This week's sale was oversubscribed, with orders exceeding $29 billion, the ministry said.

“We are delighted for the successful pricing of this transaction and the positive response we have received from international investors,” Finance Minister Anas al-Saleh said.

Last Update: Wednesday, 20 May 2020 KSA 09:49 - GMT 06:49