BD150m Govt bond issue opens today

Manama : Bahraini and non-Bahraini investors can directly subscribe the 17th issue of Government Development Bonds through the primary market from today, the Bahrain Bourse (BHB) announced yesterday.

The bonds are issued by the Central Bank of Bahrain (CBB) on behalf of the Government of Bahrain. Subscribers can place their orders with registered brokers at Bahrain Bourse, the BHB said in a statement. Thereafter, investors will be able to trade the bonds on the secondary market at BHB, once listed on BHB, which is expected to be on August 19, 2018, it said.

The subscription will remain open until August 1, 2018, the BHB said.   The BD150-million bonds are issued at a par value of BD1 each on August 5, 2018 for a period of three years ending August 5, 2021 with a coupon rate of 6.55 per cent, which will be paid every six months on February 5 and August 5. The Government of Bahrain directly guarantees the bonds. 

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 has specified a minimum subscription of BD500 (500 bond). BHB has also determined a minimum allotment of 10,000 bonds per subscriber applying for an amount of BD10,000 and above, while the remaining quantity will be allocated on pro-rata basis. 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.