International firms Allen & Overy and Baker & McKenzie are advising the Kingdom of Bahrain and its lenders on a planned sovereign bond, as shown by a preliminary prospectus of the issuance. Other than these two law firms, local Bahraini firms Qays H. Zu’bi Attorneys & Legal Consultants and Hassan Radhi & Associates are also acting on the deal as advisers on local Bahraini law.
Baker & McKenzie, through its Manama and London offices, and Qays H. Zu’bi are acting on behalf of the issuer, while Allen & Overy and Hassan Radhi & Associates are advising the joint lead managers on the deal. Bahrain has mandated Citigroup, the Gulf International Bank, JP Morgan, and Standard Chartered to lead the deal. The kingdom plans to use the proceeds of the bonds for general budgetary purposes, the prospectus said.
The Bahraini sovereign bond is expected to be issued after investor roadshows end next week. Sources told Reuters earlier this week that Bahrain could be looking to raise as much as $1.25 billion from the sale. The country hopes to capitalise on an issuance window as risk appetite improved after Greece's election results on Sunday. The election has eased investor fears of a eurozone breakup, which boosted shares and sent the euro to a one-month high.
The Gulf Arab state was hit by anti-government demonstrations in the last year, but managed to raise $750 million from an Islamic bond issue in November. That deal was largely supported by a strong local bid, as well as tapping into demand for Islamic assets. Allen & Overy advised lenders on Bahrain’s sukuk, while Freshfields was mandated to act on behalf of the kingdom on that deal. ALB
Shaheen Pasha is Middle East Regional Editor at ALB. Follow her on Twitter: @ALB_TheBrief.
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