Bahrain yields and Sukuk bonds to close developing fiscal gap
(Bloomberg) – Bahrain has begun issuing a three-tranche dollar bond to help close one of the world’s largest budget deficits. The Gulf country sells benchmark seven-year Islamic bonds, as well as traditional debt during a 12-year era. years and / or 30 years, according to a user familiar with the subject, who is not legal to speak in public and has asked not to be identified. The benchmark index sometimes means the equivalent of at least $ 500 million Bank ABC, Citigroup Inc, Gulf Intercountryal Bank BSC, HSBC Holdings Plc, National Bank of Bahrain BSC and Standard Chartered Plc are the lead managers of the sale and will make a call to global investors in The announcement marks the kingdom’s return to the foreign debt market in the host location for the first time since May and follows Dubai’s sale of $ 2 billion in bonds after a six-year absence from the market for government bonds at host location In May, Bahrain sold $ 2 billion in 10- One-year bonds and 4. 5-year Islamic securities, which fit the country with the lowest rating to sell dollar bonds since the Market place lull that was triggered by the Covid-19 pandemic Bahrain is under budget pressure despite a promised $ 10 billion bailout of neighbors in 2018. Bahrain, the smallest of the economies of the six members of the Gulf Cooperation Council, will post a deficit as the Intercountryal M Monetary Fund projects will be among the 10 largest in the world This year, with 15. 7% of gross domestic product, returns of US bonds to Australia fell to traditionally low levels as the pandemic forced central banks to release billions of dollars in non-traditional financial policies. systems to economies. Investors’ request for riskier assets has in turn pushed the expected yield on the $ 1 billion Bahrain bond this month to its lowest point since its price in May (adds context in last paragraph Array) For more articles like this, visit Bloomberg. Subscribe now to get on with the ultimate trusted source for business news. © 2020 Bloomberg LP
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