Subscription in governments Islamic Leasing Sukuk through Bahrain Bourse opens

MANAMA — Bahrain Bourse (BHB) announced that starting Thursday (July 9) Bahraini and non-Bahraini investors can directly subscribe through the primary market of BHB in the government Islamic Leasing (Ijarah) Sukuk (BHD125 million) that has been issued by the Central Bank of Bahrain (CBB) on behalf of the government of Bahrain by executing their orders through registered brokers at Bahrain Bourse.

Thereafter, investors will be able to trade the sukuk on the secondary market at BHB once listed on BHB, which is expected to be on Aug. 6, 2020.

Bahrain Bourse specified that the subscription period through the registered brokers is effective on July 9, 2020 until of July 15, 2020. The subscription will be open on Thursday until Tuesday from 9:30 a.m. until 1:00 p.m. and on Wednesday from 9:30 a.m. until 11:00 a.m.

Minimum subscription size is 500 sukuk per subscriber. Allocation will be on the basis of the first 10,000 of sukuk for each subscriber and the remaining quantity will be allocated on a pro-rata basis.

The BHD125 million sukuk issued at a par value of BD1 each on July 19, 2020 for a period of six years maturing on the July 19, 2026. The annual fixed return on these securities is 4.50%, and will be paid bi-annually on Jan. 19 and July 19 every year throughout the period of this issue.

The CBB issued the government Islamic Leasing (Ijarah) Sukuk on behalf of the government of Bahrain. The government directly guarantees the sukuk securities.