Nogaholding, the investment and development arm of Bahrain's National Oil and Gas Authority (Noga), has successfully priced a $1 billion dual-tranche offering. 

 

The $500 million 7.625 per cent six-year notes and $500 million 8.375 per cent 10-year notes were nogaholding’s second issuance off its $3 billion programme following the debut offering in 2017. 

 

The issuance achieved its objectives by extending the debt maturity profile and completing the company's funding requirements for the year in support of an ongoing capex programme. The offering also received very strong international support with over 70 per cent of bonds allocated to US and UK investors and a total order-book subscription of 2.5 billion. This was only the second international capital markets offering from Bahrain in 2018 and marked a re-opening of market access for the country after the sovereign's March issuance.

 

Nogaholding conducted a short investor exercise in London, New York and Boston prior to opening books with a senior delegation led by Shaikh Mohamed bin Khalifa Al Khalifa, the Minister of Oil and chairman of nogaholding, and members Dr Dafer Al Jalahma, acting chief executive; Qaisar Zaman, general manager, investments; and Hassan Al Alawi, manager, portfolio management.

 

Minister Shaikh Mohamed said: "This was a key offering for nogaholding as we complete the year's funding and we will go on to execute our investment programme in upstream and downstream assets. It was successful financing for the company as well as a landmark transaction for the Kingdom of Bahrain. This is one more step in securing the ongoing strategy to continue to invest and expand the Kingdom’s oil and gas sector."

 

The international, regional and local partners that participated in nogaholding's offering include BNP Paribas, Citi and J P Morgan as joint global coordinators and Bank ABC, Gulf International Bank, HSBC, National Bank of Bahrain, Société Générale and Standard Chartered Bank as joint bookrunners. 

 

In addition, law firms Latham & Watkins and Allen & Overy acted in their capacities as international legal counsel to the issuer and international legal counsel to the joint bookrunners, whilst local law firms Zu'bi & Patterns and Hassan Radhi & Associates acted as Bahrain's legal counsel to the issuer and Bahrain's legal counsel to the joint bookrunners. 

 

Nogaholding is 100 per cent owned by the Government of Bahrain and plays a fundamental role in the execution of the kingdom's policy in the oil and gas sector and stewardship of Bahrain's investment in oil, gas and petrochemical assets.

 

Nogaholding's main portfolio includes: Bahrain Petroleum Company (Bapco), Bahrain National Gas Company (Banagas), Bahrain National Gas Expansion Company (Tawseah), Bahrain Aviation Fuelling Company (Bafco), Bahrain Lube Base Oil Company (BLBOC), Gulf Petrochemical Industries Company (GPIC), Tatweer Petroleum, Bahrain LNG and Bahrain Gasoline Blending.  - TradeArabia News Service