BMA makes largest-ever issue of Islamic bonds
The Bahrain Monetary Agency (BMA) is to launch the largest-ever issue of Government Islamic bonds. The $250 million issue of Ijara sukuk will carry a maturity of six years, commencing February 3, 2003.
Subscriptions for the bonds will be received in January. The rental return will be set just prior to the opening of subscriptions. The bonds will be issued by BMA on behalf of the Government of the Kingdom of Bahrain.
All commercial banks, Islamic financial institutions and national insurance companies operating in Bahrain will be allowed to subscribe to the bonds. Clients of the eligible participants will also be able to subscribe through the participating institutions.
“This is the largest Islamically-structured primary bond issue to be made by the Government of Bahrain and the second largest ever made by the Kingdom,” said Executive Director of Banking Operations at the BMA, Waleed Abdulla Rashdan.
The forthcoming issue reinforces BMA's debt calendar as being a key element in increasing the depth and liquidity, as well as sophistication, of the market for conventional and Islamic financial instruments.
This bond issue is among a series of new initiatives launched as part of a new BMA strategic plan to develop seven asset classes. These are debt and equity markets, corporate and private banking, remote services, Islamic finance and insurance. — (menareport.com)
© 2003 Mena Report (www.menareport.com)