By Robert Hogg
Nov 29 (IFR) - The State of Kuwait has sent a request for
proposals for a potential debut international bond, according to
The sovereign is expected to issue next year, most likely in
the US dollar market, continuing the spree of Gulf sovereign
In October, bankers said that Kuwait was in no rush to fund
overseas, according to Reuters. Finance Minister Anas al-Saleh
had said in July the government planned to sell as much as
US$10bn in conventional and Islamic bonds in international
markets to help plug Kuwait's budget deficit for the current
fiscal year, which will end on March 31.
Several Gulf sovereigns have sold bonds in the international
markets this year, led by Saudi Arabia's record breaking
US$17.5bn triple-tranche offering in October.
Other notable deals from Gulf sovereigns in 2016 include
Oman's return after a 20-year absence, Qatar's US$9bn trade and
Abu Dhabi's US$5bn transaction.
Kuwait, however, will be a new name for investors, though
corporates and banks from the country have outstanding US dollar
This year holding company Kipco printed a US$500m 2023 bond
at a yield of 5% in March, while Burgan Bank printed the first
ever senior US dollar deal from a Kuwaiti bank in September.
Burgan, Boubyan Bank and National Bank of Kuwait also have
outstanding subordinated bonds.
Timing for the sovereign's debut issuance remains unclear.
Kuwait is rated Aa2 negative/AA stable/AA stable.
(Reporting by Robert Hogg; editing by Alex Chambers and Sudip