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Bahrain, acting through the Ministry of Finance and National Economy, has mandated banks to arrange a series of virtual fixed income investor calls commencing on Tuesday, 29 April 2025.
A Regulation S /144A benchmark size dual tranche USD-denominated fixed rate transaction consisting of an 8-year sukuk under the Bahrain's Trust Certificate Issuance Programme and a 12-year senior, unsecured bond under Bahrain’s Global Medium Term Note Programme will follow, subject to market conditions.
The kingdom is rated B+ (negative outlook) by both Fitch Ratings and S&P. Last week S&P downgraded Bahrain's outlook to "negative" from "stable" citing ongoing market volatility and weaker financing conditions that could increase the government's interest burden.
Citi, First Abu Dhabi Bank, HSBC, JP Morgan and National Bank of Bahrain have been picked as joint global coordinators. Bank ABC, Dubai Islamic Bank, Emirates NBD Capital, KFH Capital and KIB Invest are mandated as joint bookrunners on the sukuk tranche. Together with the global coordinators, Bank ABC and Emirates NBD Capital are mandated as joint bookrunners on the bond tranche.
The proceeds of the issuances will be utilised for general budgetary purposes. The sukuk and bonds, which will be listed on the London Stock Exchange, are expected to be rated B+ by Fitch and S&P.
(Writing by Brinda Darasha; editing by Seban Scaria)
