The Central Bank of Kuwait (CBK) announced the allocation of the final issuance of Central Bank bonds and tawarruq (securitization), valued at 200 million Kuwaiti dinars ($660 million), Kuwait News Agency (KUNA) reported.
The bank took to Twitter to share that the bonds have a term of three months and a return rate of 4.25%. This follows the previous issue on April 17, worth 240 million dinars, with a return rate of 4.375% and a term of six months.
Bonds are a type of debt instrument governments use to borrow money, with the obligation to repay its value to the buyer on the maturity date with interest.
Read more: Kuwait on the cusp of major economic upsurge
Securitization, on the other hand, is a process that allows institutions to collect a group of funds owed to them or debts and convert them into securities that can be traded on.
This latest issuance demonstrates Kuwait’s ongoing commitment to managing its finances effectively and leveraging capital markets to drive growth.
In May 2022, CBK issued bonds and tawarruq with an accumulated value of 360 mn Kuwaiti dinars ($1.2 billion) with a maturity period of six months, and with a rate of return standing at 2 percent.
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