The Bahrain Monetary Agency (BMA) launched a debut issue of six-month ijara sukuk (Islamic leasing bonds) in August, the first short-dated instrument to be available to Islamic investors.
The BMA has already issued a total of $1.21 billion-worth of medium-dated and long-dated sukuk, and this first BD22.2 million ($59 million) issue means that its yield curve now extends from six months to 10 years. The issue was 222% oversubscribed, and pays 4.06% over Libor.
The BMA plans to issue this short-term paper on a monthly basis, and hopes that it will help develop Islamic banking as well as improve opportunities for commercial banks and pension funds.
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