The Bahrain Monetary Agency (BMA) is launching a $50 million issue of Government Islamic leasing bonds (Ijara sukuk). The upcoming issue carries a maturity of three years and minimum subscription has been set at $10,000, which is also the par value of each bond.
The Ijara sukuk will be issued on December 15, 2003 and will mature on December 15, 2006. The rental return will be paid twice a year, on June 15 and December 15 annually, stated a press release.
The sukuk are being issued by the BMA on behalf of the Government of Bahrain. BMA will receive subscriptions for the sukuk from December 4 to 11, 2003. All banks and national insurance companies operating in Bahrain are allowed to subscribe to the sukuk. Individual and institutional investors can also subscribe through the participating institutions.
The Government of Bahrain undertakes to buy back the Ijara sukuk at their nominal value at the end of the lease period. The sukuk will be listed and traded on the Bahrain Stock Exchange (BSE). They can also be traded at prevailing market prices, over-the-counter through the participating banks.
This is the eighth offering of Ijara sukuk to be made by the BMA. Another $250 million offering of Ijara sukuk will 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)
© 2003 Mena Report (www.menareport.com )