Kuwait Projects Company (Kipco), one of the country’s biggest investment firms, has issued a $500m bond after receiving orders worth $3.3bn, according to a company statement.

The bonds pay a fixed rate coupon of 8.875 per cent a year and have a tenor of seven years. The deal was arranged by France’s BNP Paribas, and the US’ Goldman Sachs and JP Morgan.

“This issue will open the door for other institutions in the region and might be a catalyst for regional stock markets. As a publically-listed company, Kipco’s bond is one of the first from the region to be issued by a company which does not have direct government ownership,” says Kipco’s vice-chairman.

Kipco appointed banks and began meeting investors in late September, according to bankers close to the deal.