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Issue 8 - June 2016
@BahrainBourse
www.bahrainbourse.comBAHRAIN BOURSE LISTS BBK CAPITAL SECURITIES
Bahrain Bourse (BHB) signed
on Tuesday, 3
rd
May 2016 two
agreements with BBK, the first
is to list BBK’s perpetual tier
1 convertible capital securities
and the second to assign Bah-
rain Bourse as a registrar for the
bondholders of the securities.
The total number of securities
listed is 86,097,511 with a nom-
inal value per capital security of
BD 1.000. Trading in the secu-
rities (ISIN BH000F358881) is
open to all investors by placing
buy and sell orders through a
BHB-licensed broker, while clear-
ing and settlement will be un-
dertaken by the Bahrain Bourse.
The capital securities offer an at-
tractive annual interest rate of 8.25
per cent for the first five years, after
which the rate will be reset to the
equivalent of 3-month Bahraini
A total number of six agree-
ments were signed between
Bahrain Bourse (BHB) and six
of its listed companies to as-
sign Bahrain Bourse as a Share
Registrar for their shares. The
listed companies that assigned
Bahrain Bourse as their share
registrar are United Gulf Bank,
ABC Bank, Delmon Poultry, Al
Baraka Banking Group, Gulf
Hotel Group and Ithmaar Bank.
According to the agreements,
Dinar Interbank Offered Rate
(BHIBOR) plus 5.86 per cent, and
will be paid on semi-annual basis.
The capital securities, being per-
petual, have no fixed or final re-
demption date; and may only be
redeemed at the Issuer’s option
after a minimum period of five
years after issuance, unless they
have been converted by the Issu-
er. An option to convert the se-
curities, in whole or in part, into
ordinary shares of BBK has been
reserved. This option could be ex-
ercised in any one of three years
– 2019, 2020 or 2021 – subject to
approval of BBK shareholders at
an extraordinary general meeting.
Congratulating BBK on the list-
ing, Chief Executive of Bahrain
Bourse, Shaikh Khalifa bin Ebra-
himAl Khalifa, said: “The listing of
this first-of-its-kind first Bahraini
Dinar-denominated perpetual tier
1 convertible capital securities is-
suance in the region underlines
the ongoing initiatives by the Cen-
tral Bank of Bahrain and the Bah-
rain Bourse to bring new products
and services to the stock market.
These are designed to strengthen
the competitiveness of the Bourse,
and enhance its appeal to local, re-
gional and international investors,
both institutional and individual.”
BBK Chief Executive, Mr. Reyadh
Sater, said: “We would like to
thank our shareholders for their
trust and confidence in the bank
which translated in 86.1% partic-
ipation in the offering. We would
also like to thank our partners in
this landmark transaction – reg-
ulators Central of Bank of Bah-
rain and the Bahrain Bourse; lead
manager Securities & Investment
Company (SICO); legal advisors
Trowers & Hamlins (internation-
al) and Elham Ali Hassan & As-
sociates (Bahrain); auditors Ernst
& Young; and paying agents Karvy
Computershare – for their profes-
sional contribution to the success-
ful issuance, subscription and list-
ing of the Bank’s capital securities.
“The issuance of the AT1 perpet-
ual capital securities is an innova-
tive form of capital raising which
shall enhance BBK’s capital ade-
quacy to support further growth
of its earning asset base primarily
through core lending activities, as
well as funding the bank’s strate-
gic expansion and diversified ini-
tiatives, both locally and globally.
Chief Executive Officer of Se-
curities & Investment Company
(SICO) (lead Manager), Ms. Najla
M. Al Shirawi, commented: “The
successful listing of BBK’s capital
securities has important implica-
tions for the Kingdom’s banking
sector and stock market, and also
for investors. It will also build and
enhance the depth and diversity of
investment options on the Bahrain
Bourse. For investors, it will pro-
vide liquidity and an exit route,
since they will be able to clear, in-
crease or decrease their positions
through the secondary market.”
Following the listing of this
bond issue, the number of con-
ventional bonds and sukuk is-
sues listed on BHB reached 12
issues with an approximate to-
tal value of US$ 4.56 billion.
DURING THE SECOND QUARTER OF 2016
BAHRAIN BOURSE BECOMES THE SHARE REGISTRAR FOR 6 LISTED COMPANIES
Bahrain Bourse will provide the
listed companies that assigned
the Bourse as their share registrar
with a variety of services that in-
clude maintaining a record of the
share register that holds the shares
in electronic form, and updating
the data of the registry resulted
from dealing on these companies’
shares in accordance with the rules
and regulations of Bahrain Bourse.
In addition, the bourse will pro-
vide these companies with online
services that include real-time
shareholding
confirmations
with the percentage of investors’
holdings, key persons’ dealings,
investors’ account statements,
and other periodical reports.
It is worth mentioning that Bah-
rain Bourse issued a resolution
regarding amending the listing
requirements of the listed share-
holding companies on the Main
Board in Bahrain Bourse, which
includes registering and depos-
iting the issued shares in the
Clearing, Settlement, Central
Depository & Registry system in
the Bourse, and requires that the
establishment and management
of the shareholders’ record in the
company is in line with the elec-
tronic registry system licensed
by the Central Bank of Bahrain.