Share

Kuwait Central Bank announces $792 million bonds, tawarruq issuance with 4.375 percent return rate

CBK has specified that this issuance will remain valid for a period of three months
Kuwait Central Bank announces $792 million bonds, tawarruq issuance with 4.375 percent return rate
In October 2023, CBK allocated $776.5 million for 3 months to facilitate bond and tawarruq issuance. (Photo Credit: CBK)

The Central Bank of Kuwait (CBK) has recently announced the issuance of bonds and tawarruq. The total value of these financial instruments is set at KWD240 million (equivalent to $779.44 million). According to the Kuwait News Agency (KUNA), CBK has specified that this issuance will remain valid for a period of three months and will yield a rate of return of 4.375 percent.

Read more: Kuwait issues final Central Bank bonds, tawarruq worth $660mn

In October 2023, the CBK allocated KWD240 million for a three-month duration to facilitate the issuance of bonds and tawarruq. These financial instruments will provide a return rate of 4.375 percent.

Bonds are instruments used by governments to borrow funds, with the commitment to repay the principal amount plus interest to the bondholders upon maturity. On the other hand, tawarruq is a process that allows businesses to convert funds or debts into tradable securities.

Moreover, the bonds and related tawarruq mentioned here pertain to local bonds offered by the CBK to banks operating within the Kuwaiti banking sector. The purpose of these bonds is to regulate liquidity by withdrawing excess funds from the market.

Furthermore, in June 2023, the CBK allocated KWD240 million (about $781.38 million) for a three-month period to issue bonds and securities with a return rate of 4.250 percent. Additionally, a second issuance was made for an amount of KWD230 million (approximately $759 million) over a six-month period, featuring a return rate of 4.375 percent. Also, on May 29th, the CBK issued bonds and tawarruq totaling KWD240 million (around $792 million).

For more news on banking & finance, click here.

Related Topics:
The stories on our website are intended for informational purposes only. Those with finance, investment, tax or legal content are not to be taken as financial advice or recommendation. Refer to our full disclaimer policy here.