Jul 02 2012 |
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Bahrain $1.5Bn Bond Oversubscribed
Bahrain $1.5Bn Bond Oversubscribed
The Bahraini government successfully issued a $1.5bn bond on 27 June which came in 400% oversubscribed. The 10-year paper carried a coupon of 6.125% and saw pricing of 437.5 basis points (bps) over benchmark mid swaps. This was at the tighter end of pricing guidance suggesting strong demand. It is also lower than the level seen for Bahrain�s November $750mn sovereign sukuk issue which was priced at 450 bps over mid swaps (MEES , 28 November 2011). It indicates that investor appetite has improved as the unrest which Bahrain saw last year has been largely contained.
The bond was issued under 144a and Regulation S rules which allow it to be sold to US and European markets respectively, and it was also offered to Asian investors. It was rated BBB by both Moody�s Investors Service and Fitch. �This demand for bonds is proof of the strong credit standing enjoyed by the Kingdom of Bahrain and the confidence given by the international markets for Bahrain�s financial sector,� said Central Bank of Bahrain Executive Director, Banking Operations, Shaikh Salman bin Isa Al Khalifa. Noting this was Bahrain�s second bond offering in the US markets he said it would be used to create a yield curve for long term government issues. Bahrain�s bonds are offered through the CBB and bookrunners on this issue were Citi, Gulf International Bank, JP Morgan and Standard Chartered.
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