Bahrain guides pricing of about $3 billion of 7.5-year Sukuk and 12- or 30-year bonds

By Rebecca Melvin

New York, Sept. 13 – The Kingdom of Bahrain plans to price about $3 billion of debt in three tranches, and has set guidance for a yield of 5 3/8% to 5½% for the Sukuk, 7% area yield for the conventional 12-year notes and 7 5/8% to 7¾% yield for the conventional 30-year bonds, according to a syndicate source on Tuesday.

The size of the Sukuk is capped at $850 million, and investors have placed orders for more than $9 billion of notes, with the most orders placed for the 12-year tranche, according to a marketing update.

CBB International Sukuk Co. 6 SPC is acting on behalf of Bahrain as issuer of the Sukuk, and Bahrain, acting through its Ministry of Finance, is issuing the 12-year and 30-year tranches. All tranches (expected ratings: BB-/BB+) are being distributed under Rule 144A and Regulation S.

BNP Paribas, Citigroup, Gulf International Bank, JPMorgan and National Bank of Bahrain are bookrunners for the offerings.

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