Kuwait attracted more than $9 billion in investor bids to buy dollar-denominated bonds on Wednesday, highlighting resilient demand for debt from the OPEC member even as it faces daily missile and drone attacks from Iran.

Kuwait hired banks including Goldman Sachs and Citigroup to arrange a three-part transaction with tenors of 3, 5 and 10 years, according to a person familiar with the matter.

Final terms, including bond size and pricing, are likely to be announced later today.

Kuwait is a key U.S. ally in the Middle East and one of the world's richest countries, thanks to its massive oil reserves. However, its economy has come under pressure this year as Iran regularly shells it in retaliation for U.S. and Israeli strikes.

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Earlier this year, analysts at Goldman estimated that Kuwait's fiscal deficit had widened to about 40% on an annualized basis, with the closure of the Strait of Hormuz forcing it to halt most of its oil exports.

Since tensions between the U.S. and Iran flared up again around July 7, Kuwait has become a target more than any other country by Tehran.

U.S. bases, as well as Kuwaiti power and water stations, have been damaged. This has caused Kuwait's yield spreads, or the premium over U.S. Treasuries demanded by investors, to jump.

Still, those spreads remain among the tightest in emerging markets, reflecting the country's high credit rating.

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With the new bonds, Kuwait is offering prices in the range of 95 basis points over U.S. Treasuries for 3-year debt and 110 basis points for 10-year bonds, according to the source.

After an 8-year hiatus, Kuwait returned to the international bond market late last year, raising $11.25 billion and attracting investor bids that peaked at around $30 billion.

In that deal, Kuwait sold 3-year bonds at a spread of 40 basis points.

It also sold 10-year bonds at a spread of 50 basis points.

The spreads on the latest bonds may tighten from initial guidance, depending on how strong demand is.