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Tue 4 Oct 2016 06:42 PM

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Bahrain launches $2bn bond, includes $1bn sukuk

Offering comes as Bahrain battles budget deficit as lower oil price dents state revenues

Bahrain launches $2bn bond, includes $1bn sukuk

Bahrain has launched a $2 billion bond offering comprising a $1 billion sukuk and a $1 billion conventional bond, according to a lead.

The sovereign will price the long seven-year sukuk at 5.625 percent. That compares with initial thoughts of 6 percent area and guidance of 5.75-5.875 percent.

Bahrain will also price a 12-year conventional bond at 7 percent. That compares with initial thoughts of 7.25 percent area and guidance of 7.125 percent area.

The combined book closed in excess of $7 billion.

The 144A/Reg S transaction is today's business via Bank ABC, BNP Paribas, Credit Suisse, JP Morgan, Standard Chartered Bank.

Bahrain is rated BB (stable) by Standard and Poor's and BB+ (stable) by Fitch.

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