Bahrain’s sale of $2 billion of debt was met by strong investor demand, allowing the country to tighten the pricing.
Pricing on a seven-year Islamic notes has decreased to 6% from the initial talk for the profit rate of around 6.625%, according to a person familiar with the matter. It’s also issuing 12-year conventional debt with final yield 7.5% versus guidance in range of 7.625%-7.75% down from around 8%. The size of each tranche is fixed at $1 billion.
The $14 billion orderbooks, which exclude joint lead manages interest, are skewed to the Islamic bond, the person said. Pricing is expected later on Tuesday.
Bahrain is following the likes of Mexico, Brazil and neighboring Saudi Arabia, which issued a $12 billion bond last month, taking advantage of a drop in US yields since October and to help fund fiscal deficits.
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