‘EBRIT’ begins trading on BHB

Manama : Bahrain Bourse (BHB) yesterday commenced the trading on the units of Eskan Bank Realty Income Trust, under the symbol ‘EBRIT’,  Eskan bank said. 

The total number of units listed is 198,000,000 with a nominal value of BD0.100 per unit. 

Trading in the units (ISIN: BH0005158K14) is open to GCC individual and institutional investors who can by place ‘buy and sell’ orders through a BHB-licensed broker, while clearing and settlement will be undertaken by Bahrain Bourse. 

Marking the occasion, Eskan Bank General Manager Dr. Khalid Abdulla rang the trading session opening bell at the Bourse in the presence of BHB Chief Executive Officer Shaikh Khalifa bin Ebrahim Al Khalifa, Securities & Investment Company (SICO) Chief Executive Officer Najla Al Shirawi, and other officials.

The Eskan Bank Realty Income Trust has a target of 6.5 per cent in net distributable income payable semi-annually, and is expected to offer lower risk and volatility than stocks and bonds due to long-term rents, prime-asset backing, and no current leverage. 

The REIT comprises of two initial income-generating and unleveraged properties: Segaya Plaza, a mixed retail and residential property located in Manama; and the commercial components of Danaat Al Madina, a mixed-use property development situated in Isa Town. The properties currently have a combined occupancy rate of over 85 per cent, and the Trust intends to increase its property portfolio as and when suitable opportunities arise.

Congratulating Eskan Bank on the listing, BHB Chief Executive Shaikh Khalifa bin Ebrahim Al Khalifa, said: “The commencement of trading of Bahrain’s first Sharia-compliant retail real estate investment trust underlines the ongoing initiatives by the Central Bank of Bahrain and Bahrain Bourse to bring new products and services to the exchange.”

Najla Al Shirawi, Chief Executive of SICO, which is the mandated lead manager for the offering, as well as the sub-investment manager and dedicated market maker said that this will add greater depth to the Kingdom’s real estate sector, while helping to improve liquidity in Bahrain Bourse. 

Eskan Bank General Manager Dr. Khalid Abdulla said: “This provides investors with the opportunity to share in the Bank’s significant property development activities, and benefit from commercial and residential rental income across diversified assets.”