Kuwait has sold USD8bn in its debut international bond offering. The country offered USD3.5bn in five-year notes at 75bps over similar-maturity US Treasuries and USD4.5bn in 10-year bonds at a 100bps premium, according to a source familiar with the offering. The offer generated USD29bn in bids, allowing the seller to tighten pricing from initial guidance of about 100bps and 120bps respectively. The government said in July it may sell as much as USD10bn in global debt markets as the country expects to post a budget deficit of KWD9.7bn (USD32bn) this year, deputy Prime Minister Anas Al Saleh said. By completing a deal now, Kuwait also avoids any possible hike in international borrowing costs if the Federal Reserve raises interest rates when it meets this week. Kuwait, OPEC’s fifth-largest producer, is rated AA by S&P. The deal is the third-largest from the Gulf region, following Saudi Arabia’s record USD17.5bn and Qatar’s USD9bn sales last year. Gulf governments raised more than USD48bn in bond sales last year, the highest since at least 2007. Oman, the largest Arab oil producer that isn’t a member of OPEC, raised USD5bn from a three part bond sale earlier this month that included five-, 10- and 30-year maturities.