Thereafter, investors will be able to trade the bonds in the secondary market at BHB once listed on BHB, which is expected to be on 27th November 2016.
The Bourse specified that the subscription period through the registered brokers is effective Sunday 6th November 2016 until Tuesday 8th of November 2016.
The BD285 million Bonds issued at a par value of BD1 each on 10th November 2016 for a period of 7.5 years ending on 10th May 2024. The annual fixed return on these securities is 5.875%, and will be paid every six months on 10th May and 10th November 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 Development Bonds 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 bonds). 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 bases.
Upon listing of the bonds, 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.