Bahrain plans $1 bln conventional bond issue-source

* username: rupertbu

Bahrain plans to issue a $1 billion sovereign bond with a 10-year maturity targeting mostly U.S. investors, a banking source said on Sunday, a move likely to help cover a potential 2010 budget deficit.

"Responses (from banks for the mandate) are due today," the source said, speaking on condition of anonymity.

The source said the planned bond will be a 144a transaction, which is regulated under the U.S. securities commission. The source also said the bond could be issued in March or April.