BD200m sukuk listed on Bahrain Bourse

02/08/2015 08:43 AST

Manama: Bahrain Bourse (BHB) has announced the listing of the government Islamic lease securities (sukuk) issued by the Central Bank of Bahrain (CBB) through registered brokers.

The sukuk will be traded under the symbol GILS23.SUK. The BD200 million securities were issued at a par value of BD1 each on July 9 for a period of 10 years ending on July 9, 2025. The returns (rent) on these securities will be paid every six months on January 9 and July 9 every year throughout the period of this issue. The annual rate of return will be five per cent.

As of today, investors will be able to sell and buy sukuk by placing their orders through the brokers who will feed them into the trading system. The system will automatically match the orders in accordance with the price priority then time priority, with a minimum of BD400 per transaction in the primary market.

Following the listing of this issue, the number of conventional bonds and sukuk issues listed on BHB reached 10 with an approximate total value of $3.993 billion.

BHB has issued on February 1 the guidelines on trading debt instruments. The guidelines organise trading the debt instruments in the secondary market in the bourse during trading sessions that start at 9.30am until 1pm from Sunday to Thursday.

The guidelines also clarify the types of orders, board lots and the tick size applied in the debt market.

The guidelines also present the pricing mechanism in the debt market which shows the seller investor will receive the full amount of the transaction which includes the sukuk value plus the coupon which will be automatically calculated by the system.

All sukuk transactions will be settled within two business days of the completion of the deal (T+2).

Gulf Daily News