Central Bank of Bahrain sells sukuk

19 August 2008
The Central Bank of Bahrain has sold a BD5m ($13.2m) short-term sukuk, structured as an al-ijarah (Islamic leasing) bond.

The issue was two times oversubscribed, and has an expected return of 2.45 per cent. The deal will mature in February next year.

Earlier in the month, the central bank issued a BD15m government treasury bill maturing in November that was four times oversubscribed and had an expected return of 2.22 per cent.

In February, it issued a longer term sukuk,with a five-year $350m deal that was arranged by Calyon. That was the first government-backed issue since 2004.

The central bank also said this month that M3 money supply, the broadest measure of money in the economy and an indicator of future inflation, grew by 36.6 per cent in June, after slowing to 32.2 per cent in May.

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