BHBNewsLetter June 2016

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Issue 8 - June 2016 @BahrainBourse
BAHRAIN BOURSE LISTS 11 TREASURY BILL ISSUES & SHORT-TERM ISLAMIC LEASE (IJARAH)
Bahrain Bourse (BHB) an-
nounced on Monday, 25th April
2016 the listing of 11 issues in
the Treasury Bills Market worth a
total of BD742 million, issued by
the Central Bank of Bahrain with
discount rates ranging between
2.00% and 2.34% for 3-12 months.
With the listing of those issues,
the total number of Treasury
Bills and Short-Term Islam-
ic Lease (Ijarah) Sukuk listed at
Bahrain Bourse became 24 issues.
It is worth mentioning that the
bourse launched the Treasury
Bills Market on 31st January
2016 with the aim of enhanc-
ing cash liquidity in local and
foreign banks and institutions
dealing in this market, and pro-
viding investors in BHB with
more investment opportunities.
WITH A SIZE OF BD 200 MILLION
COMMENCEMENT OF SUBSCRIPTION IN THE 11TH ISSUE OF THE GOVERNMENT DEVELOP-
MENT BONDS THROUGH BAHRAIN BOURSE
Bahrain Bourse (BHB) announced
that as of Monday 2nd May 2016,
and according to the invitation
announced by the Central Bank
of Bahrain (CBB), Bahraini and
non-Bahraini investors can direct-
ly subscribe through the primary
market of BHB in the Govern-
ment Development Bonds No.
11 that have been issued by the
CBB on behalf of the Govern-
ment of Bahrain by giving their
orders to registered brokers at
Bahrain Bourse. Thereafter, in-
vestors will be able to trade the
bonds in the secondary market at
BHB once listed on BHB, which is
expected to be on 22nd May 2016.
The Bourse specified that the
subscription period through
the registered brokers is effec-
tive Monday 2nd of May 2016
until Tuesday 3rd of May 2016.
The BD200 million securities is-
sued at a par value of BD1 each
on 5th May 2016 for a period of
5 years ending on 5 th May 2021.
The annual fixed return on these
securities is 5.875%, and will be
paid every six months on 5th No-
vember and 5th May every year
throughout the period of this
issue, in which the first coupon
payment will be paid on 5th No-
vember 2016 and the last cou-
pon payment on 5th May 2021.
TheCentral Bank of Bahrain issued
the Government Development
Bond on behalf of the Govern-
ment 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 in-
vestors, the Bourse specified a
minimum subscription of 500
BHD (500 bonds). BHB has also
determined a minimum allot-
ment of 10,000 bonds per sub-
scriber 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, in-
vestors will be able to trade
them in the secondary market
through a registered broker at
BHB during the trading ses-
sion, which is held on a daily
basis from Sunday to Thursday.