Manama, Bahrain–The Central Bank of Bahrain (CBB) announces that the monthly issue of the Sukuk Al-Salam Islamic securities has been oversubscribed by 197%.
Subscriptions worth BD 84.706 million were received for the BD 43 million issue, which carries a maturity of 91 days.
The expected return on the issue, which begins on May 17 and matures on August 16, is 6.15% compared to 5.80% of the previous issue on April 12.
The Sukuk Al-Salam are issued by the CBB on behalf of the government of the Kingdom of Bahrain.
This is issue No.265 (BH00060152O7) of the short-term Sukuk Al-Salam series.
Last month, Bahrain tightened guidance for its sale of U.S. dollar-denominated sukuk, or Islamic bonds, and conventional bonds after it drew combined orders of over $7.8 billion for the debt sale, a bank document on the sale showed on Thursday.
Guidance was tightened to around 6.5% for the seven-year sukuk and 7.75%-7.875% for the 12-year notes, the document from one of the arranging banks said. Initial guidance was about 6.875% for the sukuk and around 8% for the conventional paper.
