Bahrain sold $2 billion in its second bond offering of the year on Wednesday, a dual-tranche issuance comprising seven-year sukuk and a 12-year conventional tranche.
Bahrain raised $2 billion in May to bolster finances battered by low oil prices and the coronavirus crisis.
On Wednesday it sold $1 billion in sukuk at 3.95% and $1 billion in 12-year bonds at 5.45%, receiving more than $7.6 billion in combined orders for the paper on offer, a document from one of the banks arranging the deal showed.
Bahrain had considered issuing a 30-year conventional tranche in lieu of the 12-year bonds or alongside them, but opted for the shorter tenor.
“There was no investor appetite for a 30-year tranche. Bahrain has a relatively low amount of bonds maturing in 12 years, so it was a sweet spot,” a financial source said.
Bank ABC, Citi, Gulf International Bank, HSBC, National Bank of Bahrain and Standard Chartered arranged the deal.
