A $1.5 billion, 10-year bond issue launched by Bahrain's government yesterday was oversubscribed by more than 400 per cent, said a senior official of the Central Bank of Bahrain (CBB).

Executive director of banking operations Shaikh Salman bin Isa Al Khalifa said: 'This demand for bonds is proof of the strong credit standing enjoyed by Bahrain and the confidence given by the international markets for the kingdom's financial sector.'

The bonds issued yesterday (June 27), the country's first conventional bond issue since 2010, have a credit rating of BBB/BBB and carry a stable future outlook by international rating agencies Standard and Poor's and Fitch.

'We will use this issue to create a yield curve for long-term government bonds, in addition to offering bonds of the kingdom in the US markets for the second time,' said Shaikh Salman.

The bond issue was successfully marketed in the US, Europe and Asia. – TradeArabia News Service