Dubai: Bahrain is returning to the dollar bond market, according to others close to the issue, as the country faces one of the world’s biggest budget deficits this year.
Gulf Nation sent a request for proposals to banks seeking to offer a reference length question, other people said, asking not to be known because the discussions are private. The benchmark means at least the equivalent of $500 million.
The sale would possibly come with an addition of traditional bonds and Islamic securities known as sukuk, other people said.
The kingdom is under tax pressure despite a $ 10 billion bailout package from its wealthiest neighbors won in 2018. The smallest of the six member economies of the Gulf Cooperation Council, Bahrain is about to incur in a deficit of which the International Monetary Fund projects the 10 largest in the world this year with 15. 7% of gross domestic product.
In May, the government sold $2 billion in 10-year notes and Islamic securities to 4. 5 years, the country with the lowest rating on selling dollar bonds since the covid-19 pandemic’s market breakup.
Yields on Bahrain’s $1 billion bonds due in 2030 fell to the lowest point this month since its price in May. Dubai-based Arqaam Capital would possibly have to raise up to $1 billion in sales debt in this part of the year, according to Dubai – based in Arqaam Capital.
Dear reader,
This segment is about life in the UAE and the facts you can’t live without
Sign up to read and complete gulfnews. com