BAHRAIN Stock Exchange (BSE) and Bahrain Commercial Facilities (BCFC) yesterday signed an agreement to list BD 10 million bonds issued by BCFC on the BSE. The agreement was signed between Fouad Rashid, bourse director, and Ian Levack, company chief executive officer.
The five-year maturity issue ending June 2011 holds an interest rate of 0.95 points above "BIBOR" subject to a minimum of 3 per cent per annum, payable to the bondholder every six months. The subscription on this started last June 1 and closed on June 15. The CEO said the success of BCFC's initial public offering, which was covered at 2.8 times, reflects the confidence that the company could gain among investors and shareholders participating in the subscription of the issue and the future plans of the company as detailed in the prospectus.
Levack extended his gratitude to officials of Bahrain Monetary Agency and BSE for their co-operation during the different phases of approval and listing of the issue. Rashid said listing BCFC bonds on the BSE reflects the importance of the bond market as a major financing tool for companies to consider in future expansion plans. It also provides investors with different options to diversify their investments. With the listing of this issue, the number of bonds and Islamic sukuk [loans] listed on the exchange is 19 with an approximate total value of 2.83 billion.