Kuwait attracted more than $9 billion in investor bids for dollar 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 deal 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 US ally in the Middle East and one of the world's richest countries due to its massive oil reserves. However, its economy has come under pressure this year as Iran regularly bombards it in retaliation for US and Israeli strikes.

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

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

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

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

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With the new bonds, Kuwait is offering pricing in the range of 95 basis points over US 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 peaking 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 pricing spreads on the latest bonds could tighten from initial guidance, depending on how strong demand is.