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ABC head office in Bahrain

BCFC closes $53m floating rate notes issuance

MANAMA, October 21, 2014

Bahrain Commercial Facilities Company has closed a US$53 million floating rate, unsecured note issuance due in 2019.

Arab Banking Corporation (ABC) was the sole lead manager, while Trowers & Hamlins acted as lead counsel to the issue, said a statement.

The notes were issued through a private placement and have a maturity of five years, with interest paid semi-annually in arrears. The notes are fully underwritten by ABC, it said.

The issue of notes is in line with BCFC’s policy to diversify its sources of funding base, to enhance its financing operations and to spread the maturities of its liabilities, said the statement.

The funds raised from the issue of the notes will be applied to fund the growth in BCFC loan portfolio and for general corporate purposes. The transaction attracted investors from the UAE, in addition to local participants from Bahrain.

Dr Adel Hubail, chief executive officer of BCFC, said: “The issuance of the notes  reflect the importance of the bond market as a key financing tool that companies should consider to utilise the liquidity available in the market. We are pleased by the encouraging response from the investors. We thank ABC and all the investors for their continuing confidence in the BCFC’s business model.”

John McWall, head of syndications at ABC, said: “We have a long-standing relationship with BCFC and are proud to have been appointed to lead manage the bond issue on their behalf. The successful closing with investors joining from the region and locally demonstrates ABC’s ability to structure and place debt capital market issues.”

Salman Ahmed, the partner who led the team from Trowers & Hamlins, said: “The issue was delivered on schedule and in compliance with requirements of the Central Bank of Bahrain. The deal, coming on the back of BCFC's successful 2013 bond issuance, represents another positive sign for the development of capital markets in Bahrain."

In addition to its role as the lead manager, ABC will act as the principal paying agent, transfer agent and registrar for the notes.

BCFC is a public shareholding company incorporated and registered in Bahrain, which provides short-term, medium-term and long-term loans. - TradeArabia News Service




Tags: rate | BCFC | Notes | Issuance | floating |

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