A $50 million issue of Islamic leasing bonds (Ijara sukuk) made by the Bahrain Monetary Agency (BMA) has been oversubscribed by 60 percent. Due to the over-subscription, the sukuk will be allocated on pro-rata basis.
Subscriptions worth $80.4 million for the three-year issue, which opens on December 15, 2003, matures on December 15, 2006. The rental return on the sukuk is 30 basis points over the London inter-bank offered rate (Libor) for six months. It will be paid twice a year, on June 15 and December 15, stated a press release.
The sukuk are being issued by the BMA on behalf of the Government of Bahrain. With this, eight Ijara sukuk issues worth a total of $780 million have been made by the BMA. The bonds will be listed and traded on the Bahrain Stock Exchange. They can also be traded at prevailing market prices, over-the-counter through participating banks.
A ninth issue of Ijara sukuk worth $250 million is scheduled to be made in January 2004. The BMA has mandated Citi Islamic Investment Bank to arrange the international issue, which carries a maturity of five years. — (menareport.com)
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