Bahrain $1bn bond seen pricing over 200bps
Dubai, March 23, 2010
Early price guidance on Bahrain's $1 billion sovereign bond issue is seen in the low-200 basis point region over midswaps, sources said on Tuesday.
The issue would be the first sovereign bond by a Gulf state to come to market after indebted state-owned conglomerate Dubai World announced its $26 billion restructuring in November, leaving investors nervous about buying into the region's.
'It's not extremely cheap but there will be a lot of interest from US houses and locals; there is not a lot of sovereign supply,' said a London-based fund manager.
A fixed income trader at an international bank in Dubai also said the price indication looked a 'tad expensive.'
Pricing guidance on the bond is expected later on Tuesday, and the bond is seen to price on Tuesday or early Wednesday. – Reuters
More Finance & Capital Market Stories
- Gulf must consider flexible exchange rate: banker
- Productivity, trade 'key to Bahrain growth'
- Arqaam Capital advises Magrabi on key acquisition
- NBK to fund hospital expansion
- Doha Bank may sell bonds to raise capital
- Reuters launches Islamic finance indicator
- IMF 'not worried about Dubai debt obligations'
- Nonoo Exchange opens Riffa branch
- Inflation a risk for strong Saudi economy: IMF
- Ahli United expands key POS service