Kuwait offers $ 8 billion initial bonds

Kuwait has issued $ 8 billion dual-tranche debut bonds in an international offering.
The offering has comprised $ 3.5 billion in five-year bonds at 75 basis points over US Treasuries and USD 4.5 billion in 10-year bonds at a 100 basis-point premium, a well-informed source told Kuwait News Agency (KUNA) on condition of anonymity.
It has attracted order books exceeding threefold of its initial value which reflected investors' great confidence in the effectiveness of the government's financial reform plans in reducing budget deficit.
Deputy Prime Minister and Finance Minister concluded Monday a multi-leg tour that included New York, Boston, Los Angeles and London to market the bonds issuance.
Kuwait has assigned Citi Group, HSBC and JPMorgan to hold meetings with investors in Britain and the United States as of March 6.
The government seeks to use the money secured by the bonds issuance to bridge the budget deficit and to finance mega development projects in lights of expected budget deficits in the coming years, KUNA reported.

Source: BNA