The Kuwaiti government is preparing to repay a $3.5 billion worth of international bonds next March.<\/p>\n
The General Investment Authority will be ready in March 2022, to pay the maturity of the first tranche of the international bonds it issued in 2017, the Kuwaiti newspaper Al-Rai said.<\/p>\n
The newspaper indicated that this segment was for a period of five years and at an interest rate of 2.75%.<\/p>\n
The cash needed to cover that entitlement will be deposited in its local and foreign bank accounts on the specified date without default, newspaper said.<\/p>\n
Sources told the newspaper that “the provision of this liquidity will be without exits from any affiliated strategic investment, but through the authority\u2019s investments and its globally generated contributions.”<\/p>\n
“We have absolutely no problem with the liquidity that will be directed to that maturity during the specified time, and we realize the importance of preserving Kuwait’s position externally,” the newspaper said.<\/p>\n
“The upcoming commitment will be a strong message to global credit rating agencies, and to confirm the strength of the Kuwaiti financial and economic situation and its ability to advance.”<\/p>\n
In March 2017, the Kuwaiti government issued $8 billion in international bonds. The move came as part of its plans, at the time, to control the budget deficit and reform public finances.<\/p>\n
Kuwait divided the bonds it sold at the time, into two tranches. The first was for a 5-year term, worth $3.5 billion, and the second was for a 10-year term, at a value of $4.5 billion.<\/p>\n
Last November, Moody’s global rating agency affirmed the Kuwaiti banking sector’s credit rating at A1 with a stable outlook.<\/p>\n
The credit rating of the Kuwaiti banking sector is at A1 with a stable outlook, mainly supported by the strong economy, high levels of wealth and large oil reserves, Moody’s said.<\/p>\n
An A1 rating means a high capacity to repay debts with little risk, in case the country decides to borrow.<\/p>\n