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Bahrain’s dual-tranche dollar-denominated benchmark offering raised $2.5 billion at launch, through a combination of a sukuk and a conventional bond issuance, making the kingdom the latest Gulf sovereign state to tap debt markets.
The eight-year-long sukuk raised $1.5bn at launch, with a coupon rate of 5.875 per cent. The price was tightened from the initial price thoughts (IPTs) in the 6.25pc area.
The 12-year conventional bond saw an issue size of $1bn at a coupon rate of 6.625pc, with the price marginally tightened from IPTs in the 7pc area.
The combined books at launch drew investor demand in excess of $8.4bn, excluding joint lead managers’ interest. This was split between +$4.5bn for the sukuk and the +$3.9bn for the 12-year issuance.
The sukuk has been issued by the CBB International Sukuk Programme Company, with a February 2034 maturity, while the 12-year bond has been issued through the Finance and National Economy Ministry, with an October 2037 maturity.
Bahrain 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 offerings 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.
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