Manama, Bahrain – The Central Bank of Bahrain (CBB) has announced that the monthly issue of the short-term Islamic leasing bonds, Sukuk Al-Ijara, has been oversubscribed by 329 percent. Subscriptions worth BD 85.648 million ($227.46 million) were received for the BD 26 million ($68.92 million) issue.
The Sukuk Al-Ijara has a maturity period of 182 days, starting on July 6, 2023 and maturing on January 4, 2024. The expected return on this issue is 6.15 percent, compared to 6.05 percent for the previous issue on 8th June 2023.
Earlier in June, the CBB said that the issue of the 4-year Government Development Bond was oversubscribed by 415 percent. Subscriptions worth $1.097 billion were received for the $100 million issue, which carries a maturity of 4 years.
The fixed annual coupon rate on the issue, which began on June 27, 2023 and matures on June 27, 2027, is 6.25 percent.
The Government Development Bonds are issued by the CBB on behalf of the Government of the Kingdom of Bahrain.
Sukuk involves a direct asset ownership interest, while bonds are indirect interest-bearing debt obligations.