Bahrain has launched a benchmark-sized 10-year USD bond with initial pricing thoughts (IPTs) in the 7.5% area as it looks to strengthen state finances in the face of rising debt, expanding deficits and increased regional uncertainty. The sovereign is rated B with a stable outlook by both S&P Global Ratings and Fitch.

Joint Lead Managers and Bookrunners include Bank ABC, Citi, First Abu Dhabi Bank, National Bank of Bahrain, J.P. Morgan and Standard Chartered Bank.

The bonds are expected to settle on June 10, 2026, and will mature in June 2036. They will rank as senior unsecured obligations and will be listed on the London Stock Exchange. The books open today and the transaction is aimed at institutional investors under Rule 144A and Regulation S formats.

The bond, issued under the kingdom’s global medium-term note programme, comes at a time of heightened geopolitical tension in the Gulf, particularly following the escalation of conflict involving Iran in 2026, which has disrupted trade, energy flows and market confidence. The effective closure of the Strait of Hormuz has significantly impacted global shipping routes, affecting Bahrain’s oil exports, aluminium sector and broader supply chains.

(Writing by Ahmad Mousa; editing by Seban Scaria)
Ahmad.mousa@lseg.com