Bahrain markets dual-tranche bonds for second debt sale this year

SectorFinancial Markets

DUBAI  - Bahrain began marketing its second bond offering of the year on Wednesday, a dual-tranche issuance comprising seven-year sukuk, or Islamic bonds, and a 12-year conventional tranche, a document showed.The small oil producer, which averted a credit crunch in 2018 with a $10 billion aid package from its wealthy Gulf neighbours, raised $2 billion in May to bolster finances battered by low oil prices and the coronavirus crisis.It gave initial price guidance of around 4.5% for the sukuk and around 5.75% for the conventional bonds, the document from one of the banks arranging the deal showed.Each tranche will be of benchmark size, which usually means at least $500 million, the document showed. Two financial sources and a banker said Bahrain would likely issue around $2 billion.The finance ministry did more...