Tuesday July 31, 2012
Bahrain firm turns to ringgit sukuk markets
SINGAPORE: Another Gulf borrower is turning to diversify its funding sources to the ringgit sukuk market. Bahrain Mumtalakat Holding is believed to be planning roadshows in Kuala Lumpur via joint leads CIMB and Standard Chartered.
It is setting up a RM3bil Murabahah programme, which was rated AA2 by RAM. An imminent deal is not expected as basis swaps are not favourable to Gulf borrowers at the moment.
The company is owned by oil-rich Bahrain, set up as its investment arm in strategic non-oil and gas commercial assets. It owns some of Bahrain’s largest companies including Bahrain Real Estate Co and Gulf Air.
The kingdom was one of the states hit by the Arab Spring, when in the first half of 2011, political uprisings led to an implementation of three months of martial law.
That dented the Kingdom’s reputation as a stable and liberal financial hub, but despite that political turmoil, it still achieved a 2.2% gross domestic product growth last year. — Reuters