Bahrain Markets Seven-Year Sukuk as Part of its Second Bond Offering of 2020

Bahrain has begun marketing its second bond offering of 2020, in the form of a USD-denominated dual-tranche issuance, made up of a seven-year Sukuk, and a 12-year conventional tranche, according to a media reports, based on a document released from one of the banks arranging the deal.

The initial price guidance of the Sukuk is expected to yield around 4.5%, while the conventional bonds are anticipated to be around 5.75%, the document showed, with each tranche expected to be of benchmark size (at least USD 500 million). Industry sources expect the total issuance to be around USD 2 billion, according to media reports.

Bahrain, which is rated B+ by S&P Global and Fitch Ratings, ha...