Bahrain's bond raises US$1.25bn

Bahrain's bond raises US$1.25bn

Published: September 13, 2014

Sovereign sees more than US$6bn of orders for 30-year issuance.

Bahrain's return to the US dollar bond market has proved a resounding success, with an order book of US$6bn allowing the kingdom to print US$1.25bn of 30-year paper with a 6% coupon, at the low end of guidance.

The kingdom’s ministry of finance hired Citi, Gulf International Bank, Mitsubishi UFJ Financial Group and Standard Chartered Bank to run a series of investor meetings earlier in September.

The final book's breakdown by geography saw 41% of the issuance sold the investors in the US, 33% to Europe, 23% to the Middle East and North Africa and 3% to Asia.

Bahrain was last in the international debt markets in July 2013, when it raised US$1.5bn in a deal managed by BNP Paribas, Citi, Gulf International Bank and JP Morgan.

Bahrain is rated BBB with a stable outlook by Fitch and Standard & Poor’s.