Bahrain plans its second bond offering this year

Bahrain is planning its second debt bond offering this year as part of its efforts to support public finances and the oil-dependent economy.

According to Reuters, two sources familiar with the matter said that Bahrain has sent requests for proposals to banks to arrange for a possible issuance of standard-size dollar-denominated bonds. The standard size is usually no less than $ 500 million.

one of the sources said the deal could involve both conventional bonds and sukuk.

The Ministry of Finance has yet to respond to a request for comment.

Bahrain, a small producer of oil, secured a financial bailout in 2018 with a $ 10 billion aid package from its wealthy neighbors to avert a credit crunch. The Kingdom raised two billion dollars in May to strengthen its financial situation, which was affected by the decline in oil prices and the crisis of the Corona virus.

The International Monetary Fund said earlier that Bahrain's fiscal deficit is expected to jump to 15.7 percent of GDP this year from 10.6 percent in 2019. < / p>

Monica Malik, chief economist at Abu Dhabi Commercial Bank, said in this month's report that Bahrain's financial situation remains fragile and that it is imperative for the Gulf Cooperation Council to provide broader financial support.

Bahrain, which witnessed a decline in government revenues of 29 percent in the first half of 2020, had said earlier that it intended to hammer the debt markets twice this year.

But some bankers and locals said it might need more financial help from other Gulf states to overcome this year's downturn.

and this month Fitch Ratings downgraded Bahrain further in the high-risk range, citing increases in the budget deficit, government debt and a sharp contraction of GDP.

(Amazon fun knowledge)