BBK Successfully Closes USD Benchmark Bond Offering at $500 Million, in Collaboration with a Consortium of Regional and International Banks.

09 Jun 2024

BBK, a leading retail and corporate bank in the Kingdom of Bahrain, has successfully issued senior unsecured five-year international bonds valued at [$500 million]. The bond issuance was facilitated by a consortium of international, regional, and local banks.  Acting as Joint Lead Managers were the Arab Banking Corporation, Citigroup Global Markets Limited, Emirates NBD, First Abu Dhabi Bank, JP Morgan Securities PLC, Mashreq Bank, and SICO Bank. JPMorgan was appointed deal arranger for the issue.

The Bond issuance targeted professional investors in the Middle East, Asia and Europe and followed an extensive 3-day roadshow conducted in London which was attended by a delegation led by Dr. AbdulRahman Ali Saif Group Chief Executive and consisting of Mohammed Abdulla Group Chief Financial Officer Financial Planning and Control, Mohamed Al Rayes- General Manager Treasury and Investments and Hussain Toorani Head of Treasury. The roadshow had in-person and virtual meetings, and a Global Investor call, through which BBK met with 62 different investors across multiple regions and time-zones.

As a testament of the Bank’s sound financial position and efficient marketing strategy, the bond was substantially oversubscribed with the order book reaching above USD 1.2 Billion. In total more than 50 regional and international investors invested in the BBK bond which was priced at a fixed coupon of 6.875%.

BBK highlighted that the subscription exceeded the target amount.  The order book exhibited significant diversity in terms of geographical distribution and investor profiles. Commenting on the deal Dr. AbdulRahman Saif BBK Group Chief Executive said: “We take great pride in BBK’s outstanding success in completing this bond issuance at highly favorable pricing. Our deepest gratitude goes to all the leading banks that took part in this bond issue for their crucial role in facilitating this transaction and utilizing their extensive expertise in making it a big success. It is indeed a landmark achievement.”

Mohamed Al Rayes, General Manager Treasury and Investment at BBK added: “The substantial interest from a diverse range of regional and international investors underscores a strong vote of confidence in BBK’s robust capabilities and financial standing in the region. BBK already has a strong and successful track record in bond issuances in the past. The current oversubscribed offering serves again as a testament to the market’s belief in the bank’s strategic vision and solidifies its competitive position in the banking sector. This achievement is attributed to BBK’s established reputation for sound management practices, innovative financial solutions, and a proven track record of delivering attractive returns to its investors.”