Last updated: 28 June, 2012

Bahrain’s $1.5 billion bond attracts huge interest

Bahrain has successfully issued a $1.5 billion conventional bond that was four times over subscribed, demonstrating “confidence” in the kingdom’s financial sector, the government said on Thursday.

The 10-year bond was successfully marketed in the US, Europe and Asia, a statement said, adding that it was over subscribed “by over 400” percent.

“This demand for bonds is proof of the strong credit standing enjoyed by Bahrain and the confidence given by the international markets for the kingdom’s financial sector,” stated Sheikh Salman Bin Isa al-Khalifa, director of operations at the Central Bank of Bahrain.

He said the bond “will create a yield curve for long-term government bonds, in addition to offering bonds of the kingdom in the US markets for the second term.”

Unrest-hit Bahrain has seen an increasing number of Shiite-led anti-regime protests since the government crushed the kingdom’s Arab Spring uprising in March last year.

Bahrain, ruled by the al-Khalifa Sunni dynasty, has a majority Shiite population that for decades has complained of marginalisation and disenfranchisement.