Mumtalakat completes $750m bond issue

24 June 2010

Bahrain sovereign fund deal attracted an order book of more than $3.25bn

Bahrain sovereign wealth fund Mumtalakat has completed the issue of a $750m bond, priced at 300 basis points above the mid-swap rate, the middle point between bids and offers on benchmark bonds.

The deal attracted an order book of more than $3.25bn, according to the UK’s HSBC, which acted as one of the bookrunners on the deal, along with Germany’s Deutsche Bank, the US’ JP Morgan and the UK’s Standard Chartered.

Investors from across the region bought into the issue, with 37 per cent of the deal sold in the Middle East, 36 per cent in Europe, 20 per cent in Asia, and 7 per cent to US offshore investors.

The bond is the first to be issued by Mumtalakat and has a five-year tenor. The fund will use part of the proceeds to refinance existing debt.

In late March, Bahrain issued a sovereign bond of $1.25bn that had a tenor of 10 years and was priced at between 200 to 210 basis points above the mid-swap rate.

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