Bahrain is to issue a $500 million five-year
sovereign Eurobond early next year, a significant expansion of
its presence on international capital markets.
The bond, which will be lead managed by Salomon Smith Barney and
BNP Paribas, is expected to be marketed mainly to regional
institutions. The political uncertainties in the Middle East, which
have already caused some western banks to withdraw money from
Bahrain, is likely to lessen its appeal to European and US
investors. One consequence is that the bond has a shorter maturity
than the 10 years the government was hoping for.
Bahrain does not need the money as its economy is relatively
strong, with present policy firmly focused on liberalization and
privatization. But ministers are thought to be keen to take
advantage of the A- rating it received recently from Standard &
Poor's. Capital Intelligence and Moody's rate the country BBB-.
The decision to issue a...
