The financing exercise forms part of the kingdom’s prudent approach in managing its funding requirements. The transaction received strong global investor interest, with the order book peaking at around US$2.1 billion (2.1x of the total amount raised) from more than 100 investors.
Based on investor feedback, Bahrain elected to pursue the optimal cost-efficient debt capital markets format, issuing a single tranche sukuk offering with a yield of 6.875% that matures October 2025. The offering attracted a globally diversified order book from both Islamic and conventional investors, with 59% of the notes distributed in MENA, 16% in Europe, 14% in UK, 9% in the US and 2% into Asia. Distribution by investor type comprised 63% of banks/private banks, 33% of fund managers, 3% of pensions and insurance, and 1% classed as "others".
Based on investor feedback, Bahrain elected to pursue the optimal cost-efficient debt capital markets format, issuing a single tranche sukuk offering with a yield of 6.875% that matures October 2025. The offering attracted a globally diversified order book from both Islamic and conventional investors, with 59% of the notes distributed in MENA, 16% in Europe, 14% in UK, 9% in the US and 2% into Asia. Distribution by investor type comprised 63% of banks/private banks, 33% of fund managers, 3% of pensions and insurance, and 1% classed as "others".
“Bahrain has fostered a long-term relationship with debt capital markets investors, and we are pleased to see strong appetite to the transaction despite the volatile market conditions,” said Salman Al-Khalifa, Executive Director of Banking Operations at the Central Bank of Bahrain.
The kingdom is expected to raise funds through other sources of financing, including local debt capital markets and potentially could seek to come back to the international debt capital markets at a later stage in 2018.