Kuwait may work with Saudi Arabia on bond sale

Kuwait is open to coordinating with Saudi Arabia to avoid a possible clash as the two Gulf states look to raise $20 billion worth of bonds, Kuwait’s finance minister Anas Al-Saleh told Bloomberg.

Kuwait is seeking as much as $9.9 billion from investors when it starts international bond sales in September, while the kingdom reportedly looking to raise at least $10 billion.

“If it’s required and if our advisers think we should coordinate [with Saudi Arabia] in terms of timing we would do that. We have very strong ties,’’ Al-Saleh said, adding that Kuwait is yet to appoint banks to manage the offering.

Lower hydrocarbon revenues are driving bond sales across the GCC region as governments look to offset declining oil revenues.

Qatar raised $9 billion in May from an international bond sale, while Abu Dhabi raised $5 billion in April.

Meanwhile, Saudi Arabia has hired JP Morgan, HSBC and Citigroup to arrange its debut foreign bond sale after the summer, sources with knowledge of the matter earlier told the news agency.