MANAMA: Bahrain Commercial Facilities Company BSC (BCFC), the largest consumer finance company in Bahrain, announced the successful issue of its BD denominated BD20 million floating rate unsecured Bonds due 2018.
The bonds were issued by way of a private placement in registered form in denominations of BD100 each in compliance with the CBB rules on Offering of Securities (OFS) module. The bonds have a maturity of 5-years with interest paid quarterly.
Ahli United Bank BSC (AUB) acted as the Lead Manager, Sole Underwriter and Agent for the issue of the Bonds.
The funds raised though the Bonds are used for the redemption of BD6700000 fixed rate notes which matured on 30 December 2013 with the balance to be used by BCFC for general corporate purposes.
“This is an exciting moment for BCFC. We remain grateful to all the support provided to us by the Central Bank of Bahrain Capital Markets Supervision Directorate and the Retail Banking Supervision Directorate. The issue of Bonds is in line with BCFC’s policy to diversify its sources of funding base, to enhance its financing operations and to spread the maturities of its liabilities,” the Chief Executive Officer of BCFC, Dr. Adel Hubail, said.
“The Bonds have been subscribed for in full, further confirming the confidence of the market in the solid fundamentals, financial standing and underlying Strengths of BCFC. I wish also to take this opportunity to extend our appreciation to AUB for their commitment and support in Continued successfully managing the Bonds Issue amid tight timelines,” Dr. Hubail added.
“We are delighted to have successfully launched this Bond Issue. This transaction demonstrates another success for the development of capital markets in Bahrain, growing confidence in the Bahraini financial market and the Comprehensive regulatory framework put in place by Central Bank of Bahrain. BCFC with their track record of Successful bond Issuances, combined with AUB’s strong Capabilities and knowledgeable team, led to the Successful completion of the Bond Issue. AUB and BCFC have a long standing relationship and this Bond issue illustrates our ability to provide desired financing solutions to our clients,” Lloyd Maddock, Deputy Group Chief Executive Officer-Corporate Banking of AUB, said.
AUB was advised by Trowers & Hamlins – international legal counsel while KPMG acted as Auditor and Financial Advisor for this Issue.