Kuwait – Mubasher: The Central Bank of Kuwait (CBK) will issue, on behalf of the Ministry of Finance (MoF), 10-year bonds worth KWD 50 million, Alrai newspaper reported, citing sources.

Bond subscription will begin on Thursday and continue until 18 June, the sources told the newspaper, adding that the date of issuance will be set to 21 June 2017, while the date of maturity will be 9 June 2027.

The yield will be determined every six months to be equal to the rate of return on the securitised operations for the same period, in addition to 112.5 basis points, paid by the end of every six months.

Earlier in April, the CBK issued a three-year maturity government bond worth KWD 100 million with a yield of 2.5% to meet the budget deficit of fiscal year 2017/2018.

The volume of spending in the 2017/2018 budget rose 5.3% to KWD 19.9 billion, compared with KWD 18.9 billion in 2016/2017, according to a previous statement by Kuwait's finance minister, Anas Al Saleh.

Al Saleh said that his country was seeking to raise bond proceeds to KWD 20 billion, instead of KWD 10 billion, increase maturity to 30 years, and issue sukuk as debt instruments.