The Bahrian government sold US$2 billion in a dual-tranche bond issuance comprising 4.5-year sukuk, or Islamic bonds, and 10-year conventional bonds. Bahrain sold US$1 billion in sukuk at 6.25% and the US$1 billion 10-year bonds at 7.375%. Bahrain is keen on boosting finance on its fiscal deficit. Bahrain said it expects a deficit of 4% of gross domestic product for this year.
Bahrain hired Bank ABC, Gulf International Bank, HSBC, JPMorgan, National Bank of Bahrain, and Standard Chartered to arrange the bond deal.
Bahrain-based GFH Financial Group has hired Societe Generale and Standard Chartered to act as global coordinators and joint lead managers for the issuance of five-year dollar sukuk, or Islamic bonds.
The banks will market the bonds through a series of meetings starting on Jan. 15 in Asia, the United Arab Emirates and London, a term sheet seen by Reuters said.
Emirates NBD Capital, KAMCO Investment, Mashreqbank, SHUAA Capital and Warba Bank will also serve as joint lead managers.
Previously, GFH Financial Group (GFH) has announced that S&P Global Ratings has initiated coverage and assigned it with a ‘B’ long-term issuer credit rating with a stable outlook.
“The rating comes in line with the GFH’s success in reshaping its business model in order to become a fully diversified financial group,” the group said.
The report looked at the group’s four distinct business segments that include: Investment banking, where the agency made note of GFH’s ability to achieve a stable pipeline of deals as well as its focus on undertaking income-generating transactions; commercial banking, via its subsidiary Khaleeji Commercial Bank (KHCB); real estate development, where the group is looking to transform and exit legacy assets; and treasury and proprietary investments, a recently established and growing business line that manages the group’s liquidity and generates income.
Source: SWFInstitute