Kuwait Central Bank Issues KD 50M in 7-Year Treasury Bonds and Tawarruq

EcoPulse24 | Kuwait

The Central Bank of Kuwait announced today the issuance of public debt treasury bonds and Tawarruq at a total value of KD 50 million (approximately $165 million), with a tenor of seven years, through a competitive uniform-yield auction at a rate of return of 3%. The issuance was oversubscribed 4.03 times.

The latest issuance is the third in 2026 and the 14th tranche released since Kuwait relaunched its landmark debt law in March 2025, which authorizes the government to borrow nearly $100 billion over a period of 50 years. Total dinar-denominated issuances by the CBK in the Kuwaiti market since the approval of the law have now reached nearly KD 2.6 billion ($8.6 billion).

The announcement follows a previous issuance on April 29, in which the Central Bank issued treasury bonds and Tawarruq at a total value of KD 100 million (approximately $330 million).

Kuwait's 2026-2027 draft budget projects total revenues of KD 16.3 billion and expenditures of KD 26.1 billion, with an expected fiscal deficit of KD 9.8 billion ($31.9 billion) - a 54.7% increase over the current fiscal year's shortfall. Oil revenues are estimated at KD 12.8 billion, based on a conservative benchmark oil price of $57 per barrel, while the fiscal breakeven price stands significantly higher at $90.5 per barrel.