New year launch for BMA Global Sukuk

The Bahrain Monetary Agency (BMA), on behalf of the government of Bahrain, issued a US$50m Sukuk al-Ijara beginning December 15, 2003, with a three year tenor. The issue was oversubscribed to a value of US$80.4m. This is an indication that investors and banking institutions remain confident in Bahrain's economy and government issued bonds. The issue is rated an A- by Standard & Poor's and Fitch, and the Sukuks will be traded on the Bahrain Stock Exchange (BSE), with hopes that secondary markets for Sukuks will continue to grow. BMA will issue a US$250m Sukuk al-Ijara in January 2004, its first international issue which will serve as a test of non-Gulf based investors in the Bahrain market.