Invest in Bahrain Development Bonds

Manama : Bahrain Bourse (BHB) announced that, as of May 2, and according to the invitation announced by the Central Bank of Bahrain (CBB), Bahraini and non-Bahraini investors can directly subscribe through the primary market of BHB in the Government Development Bonds No. 11 that have been issued by the CBB on behalf of the Government of Bahrain by giving their orders to registered brokers at Bahrain Bourse.

Thereafter, investors will be able to trade the bonds in the secondary market at BHB, which is expected to be on  May 22.

The Bourse specified that the subscription period through the registered brokers is effective May 2 until May 3.

The BD200 million securities issued at a par value of BD1 each on May 5 for a period of 5 years ending May 5 2021. 

The annual fixed return on these securities is 5.875 per cent, and will be paid every six months on  November 5 and  May 5 every year throughout the period of this issue.

The CBB issued the Government Development Bond on behalf of the Government of Bahrain. The Government of Bahrain directly guarantees the Development Bonds securities. 

One of the main advantages of subscribing through Bahrain Bourse is the ability to own bonds directly (beneficiary ownership). 

In order to encourage retail investors, the Bourse specified a minimum subscription of BD 500 (500 bonds). BHB has also determined a minimum allotment of 10,000 bonds per subscriber applying for an amount of BD 10,000 and above, while the remaining quantity will be allocated on pro rata bases.

Upon listing of the bonds, investors will be able to trade them in the secondary market through a registered broker at BHB during the trading session, which is held on a daily basis from Sunday to Thursday.