MANAMA: Bahrain Bourse (BHB) announced that as of Thursday 21st December 2017, 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 Development Bonds No. 15 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 bonds in the secondary market at BHB once listed on BHB, which is expected to be on 14th January 2018.
The Bourse specified that the subscription period through the registered brokers is effective Thursday 21st December 2017 until Monday 25th of December 2017. The subscription will be open on Thursday and Sunday from 9:30am until 1:00pm and on Monday from 9:30am until 11:00am.
The BD200 million Bonds issued at a par value of BD1 each on 27th December 2017 for a period of 5.5 years ending on 27th June 2023. The annual fixed return on these securities is 5.50%, and will be paid every six months on 27th June and 27th December every year throughout the period of this issue.
The Central Bank of Bahrain issued the Government Development Bond on behalf of the Government of Bahrain. The Government of Bahrain directly guarantees the Development Bonds securities.
One of the main advantages of subscribing through Bahrain Bourse is the ability to own bonds directly (beneficiary ownership).
In order to encourage retail investors, the Bourse specified a minimum subscription of 500 BHD (500 bonds). BHB has also determined a minimum allotment of 10,000 bonds per subscriber applying for an amount of BHD 10,000 and above, while the remaining quantity will be allocated on pro rata bases.
Upon listing of the bonds, 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.