Mumtalakat Bonds May Yield 300 Points Over Midswaps (Update1) - BusinessWeek

Bahrain Mumtalakat Holding Co., the Persian Gulf country’s sovereign wealth fund, may price its bonds to yield about 300 basis points above benchmark midswaps, three people familiar with the pricing range said.

The banker and two investors declined to be identified because terms of the deal aren’t set. The fund may sell $500 million of bonds maturing in five years as soon as this week in its first sale of debt overseas, a person familiar with the plan said last week.

Bahrain in March sold $1.25 billion bonds maturing in 2020 to yield 200 basis points more than similar maturity U.S. Treasuries. A basis point is 0.01 percentage point. The yield has declined 11 basis points this month to 5.552 percent as of 4:50 p.m. in Dubai, according to Bloomberg bond trader composite prices.