The Central Bank of Kuwait announced the issuance of bonds and tawarruq worth KWD240 million ($792 million).
The central bank said in a statement to KUNA the issuance is valid for three months, at an income rate of 4.125 percent.
On December 16 and 31, the Central Bank of Kuwait announced a similar bond and tawarruq issue, also worth KWD240 million and with the same yield rate.
On September 9, the Bank revealed a similar allocation of bonds and tawarruq, maintaining the same total value, maturity, and yield rate.
Earlier, in April 2024, the Central Bank of Kuwait (CBK) disclosed the issuance of bonds and tawarruq totaling KWD240 million. The issuance was also for a duration of three months, offering a return rate of 4.375 percent.
In October 2023, the CBK once again allocated KWD240 million for a three-month term for the same types of issuances, continuing with the 4.375 percent return rate. In June 2023, the bank allocated the same amount for a three-month period but offered a slightly lower return of 4.250 percent. Additionally, a distinct issuance of KWD230 million occurred over six months, featuring the same return rate of 4.375 percent. Moreover, in May 2023, the CBK issued bonds and tawarruq totaling KWD240 million.
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What is the purpose of bond and tawarruq issuances?
Bonds serve as tools for governments to raise funds, with a promise to repay the principal along with interest to bondholders upon maturity. tawarruq, in contrast, allows businesses to transform funds or debts into tradable securities.
The bonds and related tawarruq referenced here are local instruments supplied by the CBK to banks functioning within the Kuwaiti banking sector. The primary objective of these bond issuances is to manage liquidity by absorbing excess funds from the market.
