Bahrain's Bapco Energies completes $1bln sukuk issuance
The tender offer, launched on January 13, 2025, saw significant participation, with over $200m of notes tendered and accepted, culminating in a successful settlement on February 13, 2025.
Bapco Energies returned to the international capital markets on January 16, 2025, with its $1bn 10-year sukuk offering. The issuance was met with overwhelming demand, attracting an order book exceeding $4bn, representing a four-fold oversubscription. This strong interest highlights investor confidence in Bapco Energies' robust market position and financial strength.
The sukuk, issued under Bapco Energies' $3bn Trust Certificate Programme, was priced at a competitive 6.250pc profit rate, achieving the tightest spread to US Treasuries ever for a Bapco Energies issuance.
The transaction drew a diversified global investor base, with 80pc allocated to GCC investors, 12pc to the UK, and 4pc each to US offshore and other markets.
The parallel execution of the tender offer and sukuk issuance aligns with Bapco Energies' proactive capital structure optimisation and liability management, allowing for effective debt maturity management and enhanced financial flexibility.
The repurchase of the notes supports Bapco Energies' long-term financial strategy, strengthening its balance sheet while maintaining liquidity for future strategic investments.
Bapco Energies group chief executive Mark Thomas said: 'These transactions underscore our commitment to disciplined financial management and proactive investor engagement. The strong participation in the tender offer and the success of our sukuk issuance highlight Bapco Energies' resilience and the market's confidence in our strategy. We continue to position ourselves as a key player in Bahrain's energy transition and a trusted issuer in global capital markets.'
The sukuk proceeds will support Bapco Energies' ongoing investment in Bahrain's energy infrastructure and strategic initiatives aligned with the kingdom's National Energy Strategy.
Bapco Energies remains committed to opportunistically tapping global capital markets to optimise liquidity and funding costs, ensuring sustainable growth and financial stability.
Copyright 2022 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (Syndigate.info).
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