Bahrain Mumtalakat Completes $750M Bond Debut; Offers Top $3B - WSJ.com

Bahrain Mumtalakat Holding Co., a sovereign wealth entity owned by the Kingdom of Bahrain, has priced its debut bond issuance--raising $750 million--with a spread of 300 basis points over midswaps, in line with price guidance.

The lead underwriters on the sale were Deutsche Bank, HSBC, J.P. Morgan and Standard Chartered, and orders were in the range of $3.1 billion by Wednesday, according to a source familiar with the sale.

Proceeds will be used for general corporate purposes, including to refinance existing indebtedness. Terms were as follows:

Amount: $750 million Maturity: June 30, 2015 Coupon: 5.5% Issue Price: 99.077 Yield: 5.212% Spread: 300 basis points over Midswaps Covenants: Change of control put at par Ratings: A (Standard & Poor's) A (Fitch Ratings)
Mumtalakat's assets are in domestic real estate, telecommunications, aviation, banking and manufacturing. Bahrain owns a separate holding company for oil and gas assets, the National Oil and Gas Authority.