The Central Bank of Bahrain (CBB) has announced that its BD165m ($437.6m) sukuk has been oversubscribed by 145 per cent.

The sukuk received offers totalling BD239m. The issue will have a tenor of three years and pays 3.75 per cent. The CBB received offers of around $4bn for a sukuk issue in June, and eventually sold a $750m sukuk to help fund a projected deficit of $1.7bn in the fiscal year 2009-2010.

The latest sukuk was structured as an al-ijara, where an asset is used as collateral for a loan and leased back to the sukuk issuers. It will be issued on 24 September.