Bahrain Plans Comeback to Debt Markets; Potentially Via Mix of Sukuk and Bonds

Bahrain is looking to return to the USD-denominated bond market, as it faces one of the world’s largest budget deficits of the year, according to media reports.

The Kingdom has sent a request for proposals to banks to offer a benchmark-size issue, which typically comes up to a minimum of USD 500 million equivalent. According to media reports, the sale may potentially include a mix of conventional bonds and Sukuk.

Despite a USD 10 billion bailout received from regional peers in 2018, Bahrain, which is the smallest economy of the Gulf Cooperation Council, is reported to still be under fiscal strain. Furthermore, the Kingdom is expected to incur a deficit of around 15.7% of its...