The Liquidity Management Center (LMC), in coordination with the Bahrain Monetary Agency (BMA), is launching a $250 million, five-year Islamic leasing bond issue (Ijara sukuk). This is BMA’s seventh issue of Ijara sukuk, bringing to a total of $730 million the value of Islamic leasing bonds issued, and the first to be made through a market maker.
Bahrain-based LMC is the arranger and manager of the issue, which is being underwritten by eight major banks. Lead managers to the issue are Kuwait Finance House (KFH) and National Bank of Bahrain (NBB), while other participants in the consortium, as co-lead managers, are Islamic Development Bank (IDB), Dubai Islamic Bank, Credit Agricole Indosuez, Maybank, Bank of Bahrain and Kuwait (BBK) and Bahrain Islamic Bank.
The sukuk will be allocated on pro-rata basis, with preferential allotment to the underwriters. Minimum subscription has been set at $10,000, which is also the par value of each sukuk. The sukuk will be listed and traded on the Bahrain Stock Exchange. They can also be traded at prevailing market prices, over-the-counter through the participating banks.
The issue starts on May 27, 2003 and matures on May 27, 2008. The rental return on the sukuk will be 60 basis points over the London inter-bank offered rate (Libor) for six months. The return will be paid twice a year on November 27 and May 27 each year. — (menareport.com)
© 2003 Mena Report (www.menareport.com )