We noticed you're blocking ads.

Keep supporting great journalism by turning off your ad blocker.

Questions about why you are seeing this? Contact us

Font Size

- Aa +

Wed 25 Sep 2019 08:26 AM

Font Size

- Aa +

Bahrain returns to the bond market for first time since $10bn bailout package

The issuance comes amid a sudden surge in debt sales by frontier and emerging sovereigns after the cost of borrowing declined

Bahrain returns to the bond market for first time since $10bn bailout package
Bahrain’s debt sale is the first since Gulf Arab allies pledged $10 billion in aid in October to help stabilise the nation’s fragile finances.

Bahrain sold $2 billion of bonds in a two-part deal about a year after it secured a bailout package from its wealthier neighbours.

The island kingdom sold dollar-denominated Sharia-compliant securities due 2027 and a conventional bond maturing in 2031, according to a person familiar with the matter, who isn’t authorised to speak publicly and asked not to be identified.

Details of Bahrain's bond sale:

  • Sukuk due 2027 at a yield of 4.5% versus initial price thoughts of between 4.875% and 5%
  • Bond due 2031 at a yield of 5.625% versus indicative price range of 5.875% to 6%

The issuance comes amid a sudden surge in debt sales by frontier and emerging sovereigns after the cost of borrowing declined. On Monday, Abu Dhabi raised $10 billion and South Africa finalised its biggest-ever debt deal.

Bahrain’s debt sale is the first since Gulf Arab allies pledged $10 billion in aid in October to help stabilise the nation’s fragile finances. It delayed an offering earlier this year.

BNP Paribas SA, Citigroup Inc., Gulf International Bank BSC, JPMorgan Chase & Co., National Bank of Bahrain BSC and Standard Chartered Plc managed the offering.

Bahrain is rated B+ by S&P Global Ratings, four notches below investment grade.

Arabian Business: why we're going behind a paywall

For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.