Junk-rated Bahrain secures second bond of the year

By Mariam Meskin
10 Sep 2020

The Kingdom of Bahrain, one of only two sub-investment grade sovereigns in the typically highly rated Gulf, tapped investors this week for its second bond of the year. The deal comes just weeks after Bahrain increased its debt ceiling, as Gulf states grapple with the impact of low oil prices and Covid-19 on their spending plans.

The Reg S/144A $2bn trade consists of a seven year $1bn sukuk and a 12 year $1bn conventional tranche, with maturities of September 2027 and September 2032 respectively. The sukuk had a profit rate of 3.95%, and the bond had a coupon of 5.45%.

The deal is ...

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