Bahrain picks banks for potential bond issue

  • Share via facebook
  • Tweet this
  • Bookmark and Share
BNP Paribas is one of the four banks chosen by Bahrain ahead of a potential bond issue.

BNP Paribas is one of the four banks chosen by Bahrain ahead of a potential bond issue.

Bahrain has picked four banks to arrange investor meetings ahead of a potential sovereign bond issue, a document from lead managers said on Monday, with proceeds likely to be used to plug an expected budget deficit for 2013.

The International Monetary Fund said in May that it was forecasting a fiscal shortfall of 4.2 percent this year, up from the 2.6 percent deficit reported by the Bahraini government for 2012.

In recent years, the Gulf Arab kingdom, which is not as blessed as its neighbours in terms of hydrocarbon reserves and relies on an oil field it shares with Saudi Arabia for some 70 percent of its budget revenue, has typically issued one international debt offering a year to help manage its finances.

It was last in the market in July last year, with a $1.5bn 10-year bond which yielded 6.143 percent. The paper was trading to yield 5.04 percent at 0909 GMT on Monday.

Roadshows ahead of the potential new deal, a benchmark-sized, dollar-denominated issue, will commence on June 12, the statement said.

One team will hold three days of meetings in the United States before roadshows in London on June 17-18. A second team will visit Riyadh and Abu Dhabi on June 12 and 13 respectively.

Bahrain, rated BBB by Fitch Ratings and Standard & Poor's, has chosen BNP Paribas, Citi, JP Morgan and GIB Capital, the investment banking arm of Gulf International Bank, to arrange the meetings, the statement added.

Benchmark-sized bonds are traditionally understood to be worth at least $500m.

Sources told Reuters on April 29 that the four banks had been picked to arrange a sovereign offering.

Related:
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Finance talk with RAKBANK

Finance talk with RAKBANK

StartUp sat down with RAKBANK’s head of personal banking, Ian...

Tips from the top: Hisham Al Gurg

Tips from the top: Hisham Al Gurg

High profile investor and entrepreneur Hisham Al Gurg discusses...

1
The hubsters' ecosystem

The hubsters' ecosystem

Tamara Pupic visits Impact Hub Dubai, the first local branch...

Most Discussed
  • 10
    UAE teens among the highest for obesity rates

    Everyone in UAE knows that biggest is best.

    UAE may not light up the international league tables in standard of living, education standards, press... more

    Friday, 29 August 2014 4:20 PM - Proud UAEer
  • 9
    Saudi Arabia seeks talks on hiring of Sri Lankan maids

    perhaps the unemployed saudi men or the millions of women who are not allowed to work could pick up a broom and start sweeping their own houses. more

    Sunday, 31 August 2014 3:28 PM - nice
  • 9
    Smoke-free Dubai - the big debate

    Surprisingly the only studies that show a negative financial impact of the smoking ban on the hospitality industry are sponsored by tobacco companies ... more

    Wednesday, 27 August 2014 4:19 PM - Telcoguy
  • 24
    World's most pierced man refused entry to the UAE

    Tolerance has its limits everywhere including Dubai and those who considered Dubai a lawless circus were held accountable...so thank you Dubai authorities... more

    Thursday, 21 August 2014 10:51 PM - Khalil
  • 23
    Baby NOT on board?

    Some of you cry babies need to get your own personal apartments on the plane ! You cry more then the babies I have seen in my travels. LOL more

    Thursday, 28 August 2014 9:10 AM - Jim
  • 21
    Israel “must be punished” over Gaza, says Dubai police chief

    This high moral ground that Mick is talking abt sound very familiar. May I remind Mick that the US & its British ally alone killed over 1 million innocent... more

    Thursday, 7 August 2014 4:12 PM - Mathew