BMA mandates Citi Islamic Investment Bank for $250 million Ijara bond issue
The Bahrain Monetary Agency (BMA) has mandated Citi Islamic Investment Bank to arrange a $250 million, five-year Islamic leasing bond issue (Ijara sukuk), to be launched next month.
The international issue will be the eighth in BMA's Ijara sukuk series, bringing to a total of $980 million the value of Islamic leasing bonds issued by the Agency. The issue will begin in November 2003, following road shows to market it internationally.
“This is not a new borrowing by the Government of Bahrain. The upcoming issue is the refinancing of an existing 100 million Bahraini dinar ($264 million) 30-year conventional bond issue, which was made on February 3, 1999, and matures on February 3, 2029,” said Executive Director of Banking Operations at the BMA, Waleed Rashdan.
“We have decided to retire the 30-year conventional bond issue and replace it with a $250 million, five-year Ijara sukuk issue. This is being done mainly with the aim of developing the debt capital market in Bahrain.”
The upcoming issue is BMA's first international issue and the second international issue to be made by the Government of Bahrain. Several local and international financial institutions were invited by the BMA to arrange the upcoming Ijara issue. The best offer was made by Citi Islamic Investment Bank, a wholly- owned subsidiary of US-based Citicorp.
The Ijara bonds are guaranteed by the Government of Bahrain. Ijara is the transfer of ownership of a service or asset for an agreed upon consideration. Ijara bonds can be issued in the capital markets to mobilize deposits for the development of long-term infrastructure projects. — (menareport.com)
© 2003 Mena Report (www.menareport.com)