22 Jun 2010
(MENAFN) Bahrain’s sovereign wealth fund (Mumtalakat) will raise over $500 million from a sale of bonds maturing in a minimum of five years, Reuters reported citing banking sources familiar with the matter.
Sources said that the bond sale would be launched in the coming few days in order to benefit from a global rally and a boost from China’s pledge to allow a more flexible yuan exchange rate. China’s move has boosted global stocks and led to a fall in US debt prices.
They could raise between $500 million to $1 billion depending on market conditions, said a banking source, saying that the market has been looking good in the last few days.
Ratings agencies Fitch and Standard & Poor’s have assigned A ratings to the expected bond issue. Income from the bond sale is expected to pay down some debt and for general corporate purposes.
Mumtalakat Holding, which bundles Bahrain’s non-oil state-owned companies, said earlier that its full-year net loss last year more than doubled due to higher losses at its portfolio companies Gulf Air and Aluminium Bahrain.
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