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.
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