Kuwait’s plans to tap the international bond market to finance the 2016-17 budget deficit are firming up. Minister of Finance Anas al-Salih says Kuwait will raise KD2.9bn ($9.6bn) in dollar-denominated bonds in Q1 2017. The issue will not only diversify the sources of government revenue, it will set a benchmark for private sector debt issuance, he says in a decree.

The bond issue will be overseen by a special unit of the ministry in association with the Kuwait Investment Authority...