The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Capital Markets

Bahrain's BMA sells first short-dated sukuk

Six-month paper will help investors diversify Shariah-compliant portfolios

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.

The sukuk can be traded, helping local banks to manage short-term local-currency liquidity management. In the future, the BMA plans to allow institutions to use the short-term sukuk as collateral against short-term credit facilities from the BMA.

"In developing this instrument, the BMA's intention was to make available to Islamic financial institutions a greater diversity of investment choices, as enjoyed by their conventional counterparts," says Salman bin Ahmed Al Khalifa, director of banking services at the BMA.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree