Bahrain Mumtalakat Holding Company B.S.C. (c) (“Mumtalakat”), the investment company for the Kingdom of Bahrain, announced today that it has successfully completed the issuance of a US$750 million (BD 282 million) five year RegS Eurobond.
The issuance, which is the first benchmark corporate USD Eurobond out of the Kingdom of Bahrain, follows a six day roadshow covering Asia, Middle East and Europe.
Mumtalakat’s offering attracted a large and diversified orderbook, which was more than four times oversubscribed, totalling over US$3.25 billion (BD 1.23 billion). The final pricing was at the tight end of guidance, at 300 basis points above benchmark mid-swaps.
Distribution was well balanced with a 37% allocation to the Middle East; 36% to Europe, 20% to Asia and 7% to other investors.
Deutsche Bank, JP Morgan, HSBC and Standard Chartered bank acted as Joint Lead Managers and Bookrunners.
Talal Al Zain, CEO of Mumtalakat, said, “We are very pleased with the exceptional success Mumtalakat achieved for the US$750 million bond offering. The strong demand generated from more than 230 investors globally is a clear validation not only of Mumtalakat’s strategy, but also the reforms undertaken as part of Economic Vision 2030 and Bahrain’s national strategy. By maintaining a climate of stable and sustainable economic growth underpinned by a strong regulatory framework, against the background of a global downturn, the Kingdom’s leadership have ensured high levels of international investor interest in Bahrain.”
Mr. Al Zain continued “There is also clear recognition for the critical role Mumtalakat plays in developing and diversifying the economy of Bahrain, and support for the strength of Mumtalakat’s portfolio of companies. This transaction will help facilitate our efforts to optimize and strengthen Mumtalakat’s capital structure while we pursue our objective of creating a diversified, global portfolio. Our aim is firmly focused on securing sustainable returns and wealth creation for future generations of Bahrain, in line with the objectives of Economic Vision 2030, aided by the sound and flexible economic policy that underpins the diversification process.”
Mr. Al Zain further added, “As the first issuer from the region since the European debt crisis, I am pleased at the role we have played in helping to re-open the regional debt capital markets, and in establishing a solid corporate benchmark for issuers from the Kingdom of Bahrain.”
Fitch Ratings assigned the Bond a senior unsecured rating of 'A', in line with Mumtalakat's Long-term Issuer Default Rating (IDR). The Outlook on the Long-term IDR is Stable. Standard & Poor's assigned the Bond an 'A' rating, in line with its long-term ‘A’ rating of Mumtalakat. The Outlook on the long-term rating is Stable.