Listing will be open for subscriptions for two-week period
Bahrains Eskan Bank has finalised its Real Estate Investment Trust (REIT) registration with the central bank. It aims to launch its REIT public offering on 22 November, according to a statement from the bank.
This will allow Eskan Bank to offer its REIT to Bahraini and GCC institutional and retail investors, with a subsequent listing on the Bahrain Bourse (BHB).
The bank statement added that the listing will be open for subscriptions for a two-week period only, closing on 6 December.
The REIT has a target distributable yield of 6.5 per cent net of all costs, and a minimum subscription of BD500 ($1,316), which should make it accessible and attractive to individual Bahraini and GCC nationals seeking a safe investment opportunity in the kingdoms real estate sector, said the banks CEO, Khalid Abdulla.
REITs were introduced in March this year in a bid to create more opportunities on the BHB.
The bourse has seen several initiatives in recent months aimed at enhancing local capital markets. These include the introduction of the Bahrain Islamic Index, which is the GCCs first sharia-compliant index, and the offering of government bonds and treasury bills.
Creating new opportunities on the Bahrain Bourse
Bahrain Bourse
Bahrain Bourse
In addition to regulating the market, the Bahrain Bourse plays a key role in developing the breadth and depth of the market to support Bahrains financial sector. Its CEO, Sheikh Khalifa bin Ebrahim al-Khalifa, believes the capital markets can offer new products and services that give issuers and investors more opportunities for investment.
Tighter banking regulations introduced after the global financial crisis have created an opportunity for stock markets to support entrepreneurs by giving firms access to the capital they need to grow.
Banks have lenders and borrowers and stock exchanges have a similar model, they have issuers and investors; in our region it has been mostly limited to shares in listed companies, says Sheikh Khalifa. But there are other forms, and with the introduction of Basel III and all the limitations on banks, we feel there is an opportunity for capital markets. Read more.
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