Bahrain has raised $1 billion through a 10-year US dollar bond after attracting strong demand from international investors, in a sign of continued appetite for Gulf sovereign debt.
Investor orders exceeded $3.2 billion, allowing the kingdom to tighten pricing from initial guidance and settle the yield at 7.125%, according to financial market data released on Thursday.
The oversubscription indicates investors were prepared to accept lower returns in exchange for exposure to Bahrain’s credit market, despite broader uncertainty across global economies and interest rates.
The issuance is scheduled to settle on June 10, 2026, with the bond maturing in June 2036. The notes will pay interest every six months and are set to be listed on the main market of the London Stock Exchange.
Several regional and international banks acted as joint lead managers and bookrunners for the transaction, including Bank ABC, Citi, First Abu Dhabi Bank, National Bank of Bahrain, J.P. Morgan and Standard Chartered.
The bond sale comes as emerging market borrowers gradually return to international debt markets, supported by improving investor sentiment and continued demand for higher-yield assets.
Analysts say Gulf issuers have continued to benefit from relatively strong liquidity conditions, even as global borrowing costs remain elevated.
