Mubasher: The Central Bank of Kuwait (CBK) issued bonds and related Tawarruq worth KWD 240 million ($791 million) on Tuesday with a 3.125% rate of return.

The issue was oversubscribed by 10.96 times, while the total purchase orders registered KWD 2.63 billion, according to data published on the CBK’s official website.

In addition, the six-month bonds will be due on 31 March 2020, the CBK added.  

Last week, the CBK has maintained the discount rate unchanged at 3%, in agreement with the US Federal Reserve’s decision to cut the interest rate by 25 basis points (bps).

The CBK’s latest issue of bonds and related Tawarruq was on Tuesday, 24 September, at a value of KWD 200 million, with a three-month maturity period and a 3% rate of return.

During the first nine months of 2019, the CBK offered bonds and related Tawarruq of KWD 6.02 billion, dropping by 6.67% year-on-year from KWD 6.45 billion during the corresponding period in 2018.

It is worth to mention that the bonds and related Tawarruq are local bonds offered by the CBK to banks operating in the Kuwaiti financial sector to regulate the market’s liquidity.