Kuwait Launches Bond Sale, Plans New Housing Cities

Kuwait Returns to Bond Market, Launches Major Housing Project

Kuwait has started accepting bids for a U.S. dollar bond issuance with maturities of 3, 5, and 10 years. The initial price guidance is set at 70, 75, and 85 basis points above U.S. Treasuries for each tranche. Major banks like Citigroup, Goldman Sachs, and JPMorgan are managing the sale. The bonds are issued under Kuwait’s Global Medium Term Note Programme with a benchmark size of at least $500 million. This marks Kuwait’s return to international bond markets after eight years.

The Kuwaiti cabinet approved legislation earlier this year to allow global debt issuance. Political delays had prevented the country from issuing bonds for years. According to the IMF, Kuwait’s debt-to-GDP ratio remains low at under 10%. However, it is expected to rise to 25% by 2030 due to government borrowing. Despite this increase, Kuwait’s debt level is still modest compared to other countries.

In another major step, Kuwait invited local and international companies to bid on contracts for building three new cities. This project covers over 300 hectares and aims to ease the housing shortage. The new cities will be the first to benefit from a recent real estate law. This law opens Kuwait’s housing market to private investment for the first time. The government hopes this move will boost housing supply and development.

Kuwait faces a severe housing shortage affecting its 1.5 million citizens. Currently, 100,000 people are on the waiting list for government housing. Many have waited for years without receiving a home. The government sees the new cities project as a key solution to this problem. It also aims to attract investment to modernize the housing sector.

Overall, Kuwait is moving quickly to strengthen its finances and improve infrastructure. The bond issuance will help fund government projects and fiscal needs. Meanwhile, the housing development plan aims to meet urgent demand for homes. These initiatives signal Kuwait’s effort to support growth and stability in the coming years.