Bahrain Bourse lists BBK Capital

Manama : Bahrain Bourse (BHB) signed yesterday two agreements with BBK, the first is to list BBK’s perpetual tier 1 convertible capital securities and the second to assign Bahrain Bourse as a registrar for the bondholders of the securities. 

The total number of securities listed is 86,097,511 with a nominal value per capital security of BD1.000. Trading in the securities (ISIN BH000F358881) is open to all investors by placing buy and sell orders through a BHB-licensed broker, while clearing and settlement will be undertaken by the Bahrain Bourse. 

The capital securities offer an attractive annual interest rate of 8.25 per cent for the first five years, after which the rate will be reset to the equivalent of 3-month Bahraini Dinar Interbank Offered Rate (BHIBOR) plus 5.86pc, and will be paid on semi-annual basis.

Congratulating BBK on the listing, Chief Executive of Bahrain Bourse, Shaikh Khalifa bin Ebrahim Al Khalifa, said: “The listing of this first-of-its-kind first Bahraini Dinar-denominated perpetual tier 1 convertible capital securities issuance in the region underlines the ongoing initiatives by the Central Bank of Bahrain and the Bahrain Bourse to bring new products and services to the stock market.”

BBK Chief Executive, Reyadh Sater, said: “The issuance of the AT1 perpetual capital securities is an innovative form of capital raising which shall  enhance BBK’s  capital adequacy to support  further growth of its earning asset base primarily through core lending activities, as well as funding the bank’s  strategic expansion and diversified initiatives, both locally and globally.  

Chief Executive Officer of Securities & Investment Company (SICO) (lead Manager), Najla M. Al Shirawi, commented: “The successful listing of BBK’s capital securities has important implications for the Kingdom’s banking sector and stock market, and also for investors.”

Following the listing of this bond issue, the number of conventional bonds and sukuk issues listed on BHB reached 12 issues with an approximate total value of US$ 4.56 billion.