Bahrain issued bonds worth $755 million
Bahrain issued bonds worth $755 million raises the Central Bank of Bahrain (the central bank), bonds worth 285 million dinars (755 million dollars) for subscription, through the Bahrain stock exchange, in order to provide funding to cover the country’s public budget deficit
The Bahrain Stock Exchange, in a statement today that investors can (Bahrainis and foreigners) subscription directly in bonds (so-called government development bonds) through the primary market the stock exchange, and by giving orders to registered brokers in the stock market, starting on Sunday, and until next Tuesday, and then traded secondary market immediately incorporated on 27 November.
According to the stock exchange statement, with a nominal value per bond Bahraini dinar ($ 2.65), with a version for seven and a half years with effect from November 10, 2016 until May 10, 2024.
And a fixed-rate 5.875% per annum, pay interest which is version every six months each year during the period of release, according to the statement.
And government development bonds represent a financial instrument issued by the Central Bank of Bahrain on behalf of the country’s government.
And the government of Bahrain to ensure issuance of development bonds directly guarantee.
And said the Bahrain Stock Exchange, it said that the minimum subscription of 500 Bahraini dinars (US $ 1326), to encourage small investors to buy.
And the bond is a debt instrument used by governments as a means of borrowing, and the creditor is the one who buys the bond, and undertakes issuer to pay the bondholder interest or profit is checked in advance the length of the bond, and given the nominal value of the bond at maturity solutions.
And Fitch Ratings predicted in June, rising budget deficits in Bahrain to 15.4% of GDP in 2016, from 14.8% last year.
In a recent report, the IMF said, it is expected to continue slowing Bahraini economy, driven by a decline in oil prices to reach the projected growth rates for this year about 2.2%.
And Bahrain is one of the poorest in terms of oil resources between the Gulf Cooperation Council (GCC), and produces about 200 thousand barrels of crude oil per day. (US dollar equals 0.3370 BD)