BCFC raises $53m through bond issue
Manama, January 22, 2014
Bahrain Commercial Facilities Company (BCFC), the largest consumer finance company in the kingdom, has raised BD20 million ($53 million) via a bond issue, said a report.
The bonds have a maturity of five years with interest paid quarterly. Ahli United Bank (AUB) acted as the lead manager, sole underwriter and agent for the issue.
The Bahraini Dinar denominated floating rate unsecured bonds are due in 2018, reported the Gulf Daily News, our sister publication.
The bonds were issued by way of a private placement in registered form in denominations of BD100 each in compliance with the Central Bank of Bahrain rules on offering of securities module.
The funds raised though the bond issuance were used for the redemption of BD6,700,000 fixed rate notes which matured on December 30 last year, with the balance to be used by BCFC for general corporate purposes.
"The issue of bonds is in line with BCFC's policy to diversify its sources of funding base, to enhance its financing operations and to spread the maturities of its liabilities," BCFC chief executive Dr Adel Hubail said.
"The bonds have been subscribed for in full, further confirming the confidence of the market in the solid fundamentals, financial standing and underlying strengths of BCFC," he added.
AUB corporate banking group deputy chief executive Lloyd Maddock said the transaction demonstrated another success for the development of capital markets in Bahrain, growing confidence in Bahrain's financial market and the comprehensive regulatory framework put in place by the CBB.
"BCFC, with its track record of successful bond issuances, combined with AUB's strong capabilities and knowledgeable team, led to the successful completion of the bond issue," added Maddock.
"AUB and BCFC have a long standing relationship and this issue illustrates our ability to provide desired financing solutions to our clients."
AUB was advised by Trowers & Hamlins which acted as international legal counsel while KPMG acted as auditor and financial adviser for this issue.-TradeArabia News Service