Published: November 19, 2014
Bahraini state investment firm raises US$600mn with first dollar Islamic issuance.
Bahraini sovereign investment firm Mumtalakat has issued its first dollar-denominated sukuk, raising US$600mn.
The firm priced the seven-year issuance with a profit rate of 4%, and structured it as a hybrid sukuk linked to commodities and its portfolio companies – the firm owns or has a stake in many public and private Bahraini businesses, including Aluminium Bahrain, flag carrier Gulf Air and Gulf International Bank.
The deal marks Mumtalakat’s return to the dollar funding market following an inaugural bond in 2010. More than 150 accounts contributed to the latest order book, which closed at US$2.6bn.
BNP Paribas, Deutsche Bank, MUFJG and Standard Chartered acted as joint lead managers, while Arab Banking Corporation and National Bank of Bahrain acted as co-lead managers.
Mumtalakat returned to profit last year after six years of losses. Chief executive Mahmood Hashim Al Kooheji (pictured) told EMEA Finance then that the firm would focus on investment not only in Bahrain but in other countries too, adding: “Our international investment focus is to pursue opportunities that are within the strategically targeted industry sectors that build on Bahrain’s strengths and the expertise of our investment team, and create greater synergies within our portfolio.”
In October the firm invested alongside the UAE’s Fajr Capital and private equity group Blackstone to take a minority stake in GEMS Education, a Dubai-headquartered company that runs more than 50 schools around the world.