Bahrain has picked four banks to arrange investor meetings ahead of a potential sovereign bond issue, a document from lead managers said yesterday, with proceeds likely to be used to plug an expected budget deficit for 2013.
The International Monetary Fund said in May that it was forecasting a fiscal shortfall of 4.2 per cent this year, up from the 2.6pc deficit reported by the Bahraini government for 2012. In recent years, the Gulf Arab kingdom, has typically issued one international debt offering a year to help manage its finances.
It was last in the market in July last year, with a $1.5 billion 10-year bond which yielded 6.143pc. Roadshows ahead of the potential new deal, a benchmarksized, dollar-denominated issue, will commence on June 12, the statement said.
One team will hold three days of meetings in the United States before roadshows in London on June 17-18. A second team will visit Riyadh and Abu Dhabi on June 12 and 13 respectively.
Bahrain, rated BBB by Fitch Ratings and Standard & Poor's, has chosen BNP Paribas, Citi, JP Morgan and GIB Capital, the investment banking arm of Gulf International Bank, to arrange the meetings, the statement added.
Benchmark-sized bonds are traditionally understood to be worth at least $500 million. Sources told Reuters on April 29 that the four banks had been picked to arrange a sovereign offering.
