PHOTO
Bahrain has become the latest Gulf Cooperation Council (GCC) state to tap international debt markets, with a two-part bond sale, adding to a busy few weeks that has seen Kuwait, Abu Dhabi and Saudi Arabia raise sovereign debt.
The offering includes a dollar-denominated, senior unsecured Reg S sukuk with an 8-year tenor, issued by the CBB International Sukuk Programme Company.
Initial price thoughts are in the 6.25% area, with maturity set for February 2034.
The second tranche is a conventional 12-year bond, issued through Bahrain’s Ministry of Finance and National Economy, with IPTs in the 7% area and an October 2037 maturity.
Bahrain, rated B+ by S&P (Neg) / B+ by Fitch (Neg), will offer the eight-year Ijara/Murabaha sukuk under its Trust Certificate Issuance Programme.
The 12-year bond will come under the kingdom’s Global Medium Term Note Programme.
The expected issue ratings for both is B+ by S&P / B+ by Fitch.
Both will be listed on the Main Market of the London Stock Exchange.
Abu Dhabi Commercial Bank, Bank ABC, Citi, First Abu Dhabi Bank, GIB Capital, JP Morgan, Sharjah Islamic Bank, and Standard Chartered Bank are the Joint Bookrunners on the sukuk. The same banks, with the exception of Sharjah Islamic Bank, are Joint Bookrunners on the 12-year bond.
In January, Moody’s projected that Bahrain would issue between $2 billion and $3 billion in international bonds, including sukuk, during 2025. The kingdom has already issued a series of development bonds this year, as it seeks ways to refinance debt due to strained finances from lower oil prices.
The GCC has a seen a series of sovereign debt issuances in recent weeks, with Kuwait raising a collective $11.5 billion from its first dollar bond sale in eight years on Tuesday.
Last week, Abu Dhabi raised $3 billion from a dual tranche bond, based on strong investor interest, while Saudi raised $5.50 billion in dual-tranche sukuk sale earlier this month.
(Writing by Bindu Rai, editing by Brinda Darasha)
