Subscription in Ijarah Sukuk through Bahrain Bourse commences

Bahrain Bourse (BHB) announced that as of Tuesday, the 2nd of January 2018, and according to the invitation announced by the Central Bank of Bahrain (CBB), Bahraini and Non-Bahraini investors can directly subscribe through the primary market of BHB in the Government Islamic Leasing (Ijarah) Sukuk Issue 25 that have been issued by the CBB on behalf of the Government of Bahrain by giving their orders to registered brokers at Bahrain Bourse. Thereafter, investors will be able to trade the Sukuk in the secondary market at BHB once listed on BHB, which is expected to be on the 21st of January 2018.

The Bourse specified that the subscription period through the registered brokers is effective on Tuesday the 2nd of January 2018 until Thursday the 4th of January 2018. The subscription will be open on Tuesday and Wednesday from 9:30 AM until 1:00 PM and on Thursday from 9:30 AM until 11:00 AM.

The BHD 100 million Sukuk issued at a par value of BHD 1 each on the 8th of January 2018 for a period of 3 years ending on the 8th of January 2021. The annual fixed return on these securities is 4.8%, and will be paid every six months on 8th of July and 8th of January every year throughout the period of this issue.

The Central Bank of Bahrain issued the Government Islamic Leasing (Ijarah) Sukuk on behalf of the Government of Bahrain. The Government of Bahrain directly guarantees the Sukuk securities.

One of the main advantages of subscribing through Bahrain Bourse is the ability to own Sukuk directly (beneficiary ownership).

In order to encourage retail investors, the Bourse specified a minimum subscription of 500 BHD (500 Sukuk). BHB has also determined a minimum allotment of 10,000 Sukuk per subscriber applying for an amount of BHD 10,000 and above, while the remaining quantity will be allocated on pro-rata basis.

Upon listing of the Sukuk, investors will be able to trade them in the secondary market through a registered broker at BHB during the trading session, which is held on a daily basis from Sunday to Thursday.

Source: BNA