#Bahrain privately places $435 million #sukuk

The government of Bahrain has privately placed a $435 mn, three-year sukuk issue in a deal arranged by Noor Bank, Bank ABC and Kuwait Finance House. The deal was priced in the area of 325 basis points over midswaps. Strained by low oil prices, Bahrain borrowed in February $600 mn in a two-tranche reopening of a previous US dollar bond issue. On Saturday Moody's Investors Service cut its rating of Bahrain's sovereign debt by one notch to Ba2, taking the rating deeper into junk territory, with a negative outlook.