The price tightening reflects the willingness among investors to accept lower yields in exchange for exposure to Bahrain’s credit.

“The transaction comprises a 10-year maturity, with settlement scheduled for June 10, 2026, and a maturity date of June 10, 2036. The notes carry a semi-annual coupon and will be listed on the London Stock Exchange’s main market,” reported Zawya.

Joint lead managers and bookrunners for Bahrain’s issuance included Bank ABC, Citi, First Abu Dhabi Bank, National Bank of Bahrain, JP Morgan, and Standard Chartered Bank.

There has been a steady reopening of emerging market issuance windows, with borrower activity picking up as investors seek yield opportunities in a higher-interest rate environment.

Talking about Bahraini bonds, the latter came under pressure after the beginning of the Iran war but recovered by mid-April after the UAE provided financial support. The central banks of the two neighbouring Gulf countries signed a currency swap agreement of AED20 billion, or BHD2 billion (USD 5.5 billion).

The Central Bank of Bahrain has already been in the warfighting mode to save its domestic economy from the fallouts of the Iran war and the disruptions at the Strait of Hormuz. In April, it offered a package of loan deferrals and credit card payments, along with other liquidity support for the individuals and businesses.

Banks have been given flexibility on how they classify affected loans, easing pressure on balance sheets at a time of rising uncertainty. The liquidity support, worth BHD7 billion (USD 18.6 billion), has also enabled the central bank to offer unlimited dinar funding to retail banks against eligible collateral for six months.

The apex financial institution’s move of extending its repo facility to three months, apart from cutting reserve requirements from 5% to 3.5%, has freed up additional capital to support lending.

The minimum liquidity coverage ratio and net stable funding ratio have both been reduced from 100% to 80% in order to inject more cash into the banking system and support economic activity.

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The NBB said in a statement that the consideration of the offer is either in cash of $0.31 per share or through a share-swap deal with a share exchange ratio of 0.167 NBB shares per Bahrain Islamic Bank shares.

The offer is subject to a minimum acquisition of 40.94 percent, which would take NBB’s total stake in Bahrain Islamic Bank up to 70 percent.

The deal to buy Bahrain Islamic Bank is expected to cost NBB around $329 million.

In the statement, NBB also said, “Bahrain Islamic Bank shareholders are notified that NBB is a conventional retail financial institution and as such the new shares in NBB offered as an alternative to the cash offer are not a Shariah-compliant investment.”

Currently, NBB, which is the second-largest bank in Bahrain with a market share of 27.94 percent, is the second-largest shareholder with a 29.06 percent stake in Bahrain Islamic Bank. While the Saudi Arabia-based Islamic Development Bank owns a 14.42 percent stake in Bahrain Islamic Bank, the General Council of Kuwaiti Awqaf holds a 7.18 percent stake.

NBB, which was also the first indigenous bank of Bahrain, first expressed interest in Bahrain Islamic Bank back in October 2018. Earlier in July this year, the bank again announced that it had re-initiated talks with the Islamic lender.

During the same period, NBB chief executive Jean-Christophe Durand revealed the bank’s plan to increase the number of branches in the UAE and Saudi Arabia and is looking to double the size of its debt capital market and advisory business to $10 billion.

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