Economy

Bahrain raises $1bln in 10-year USD bond; demand exceeds $3bln

Strong demand enabled Bahrain to tighten pricing by 37.5 basis points from IPTs.

Bahrain has raised $1 billion through a 10-year USD bond, attracting strong investor demand that pushed order books above $3.2 billion. The sovereign priced the issue at a yield of 7.125%, tightening from Initial price thoughts (IPTs) in the 7.50% area.

The price tightening shows that investors were willing to accept lower yields in exchange for exposure to Bahrain’s credit.

The transaction comprises a 10-year maturity, with settlement scheduled for June 10, 2026, and a maturity date of June 10, 2036.

The notes carry a semi-annual coupon and will be listed on the London Stock Exchange’s main market.

The issuance follows standard Reg S and Rule 144A formats.

Joint lead managers and bookrunners include Bank ABC, Citi, First Abu Dhabi Bank, National Bank of Bahrain, J.P. Morgan, and Standard Chartered Bank.

The deal comes amid a steady reopening of emerging market issuance windows, with borrower activity picking up as investors seek yield opportunities in a higher-rate environment.

© ZAWYA 

GLOBAL BUSINESS AND FINANCE MAGAZINE

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