MANAMA: Bahrain Bourse (BHB) announced that as of Wednesday, 25th of April 2018, 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 Bond Issue 16 that has 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 Bond on the secondary market at BHB once listed on BHB, which is expected to be on the 13th of May 2018.
The Bourse specified that the subscription period through the registered brokers is effective on Wednesday the 25th of April 2018 until Monday the 30th of April 2018. The subscription will be open on Wednesday, Thursday, and Sunday from 9:30 AM until 1:00 PM and on Monday from 9:30 AM until 11:00 AM.
The BHD 300 million Bond issued at a par value of BHD 1 each on the 3rd of May 2018 for a period of 2 years ending on the 3rd of May 2020. The annual fixed return on these securities is 5.50%, and will be paid every six months on 3rd of November and 3rd of May 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 Bond 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 Bond). 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 basis.
Upon listing of the Bond, 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.
