Kuwait chooses banks as a prelude to the issuance of the first bonds in the international market since 2017

Kuwait prepares him to return to the international bond markets for the first time in 8 years, after selecting a group of banks to arrange the sale of denominated bonds in the US dollar. A person notified of the case -a request not to be identified, explained that the information is not announced -that the member of the “OPEC” organization plans to issue effects on 3 segments, with the deadlines for 3, 5 and 10 years. Last June, the Ministry of Finance began addressing banks to submit their offers to arrange the issue, with the aim of raising about $ 6 billion in global debt markets, and it is not clear whether it would raise the full amount at the same time. Kuwait rating Kuwait, with a population of about 5 million, is the largest oil producer in the world based on the per capita share. It contains a classification at the A1 level of Moody’s agency, which is the same classification of Japan and China. “Fitch” confirms Kuwait’s credit rating at “AA” with a stable look. More details here, the state chose both the city group, “Goldman Sachs”, “HSBC”, “GB Morgan Chis” and “Mezoho” to arrange the problem, and today also held a conference with global investors. Kuwait has not yet announced the beginning of the sale of bonds. According to the International Monetary Fund, the debt rate for the gross domestic product in Kuwait is less than 10%, but the institution based in Washington is expected to rise to about 25% by 2030 – a level that is still low compared to most of the sovereign effects – with the country that uses the budget bruckle. Fitch expects the budget deficit to expand to 5.6% of GDP in the current financial year, compared to 2% in the previous year. Kuwait bond revenue trades the only Kuwaitian bonds denominated in US dollars, which amounts to $ 4.5 billion in 2027, with about 4.3%revenue. Last March, the Kuwaiti Cabinet accepted a long law on the Act, paved the way for the country to return to the international debt markets, after being suspended for years due to political differences. Read more: Kuwait gives the green light to sell the first international effects in 8 years, Fadi Juna, director of the fixed income portfolio in Arique Capital in Dubai, said: “Kuwait will benefit from the scarcity of the offer of its effects.”