Bahrain Central Bank mulls issuing $1.25bn bond in June

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A view of the Central Bank of Bahrain building in Manama, Bahrain. Photo - CentralBanking.com

A Bahraini central bank official said on Wednesday it is planning to issue a $1.25 billion bond in the second or third week of June.

The official told Reuters on condition of anonymity that the conventional bond will have a tenor between seven and 10 years. He hoped that this will appeal to institutional international investors who tend to favour longer-dated paper.

“We finished almost everything but we are still finalising,” the official said on the sidelines of an Arab Monetary Fund conference in Abu Dhabi.

“It (bond issue) may take place in the second or third week of June,” he said while adding that Standard Chartered, JP Morgan, Gulf International Bank and Citigroup Inc are mandated to arrange the deal.

Sources told Reuters earlier this month that the Gulf island state had picked banks for the issue which are likely to fall under a regulatory framework allowing investment by US institutions.

Bahrain’s last bond issue was a $750 million 7-year Islamic bond, or sukuk, which was priced to yield 6.273%.

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