Bahrain sovereign wealth fund Mumtalakat has seen strong demand for its recently issued sukuk having received orders in excess of $4 billion for a $500 million Islamic bond.
According to Mumtalakat chief executive, Khalid Al Rumaihi, the demand was somewhat unexpected.
The wealth fund raised a similar amount in 2019 for a $600 million sukuk.
However, the latest sukuk is the first debt instrument to be issued in 2020 within the Mena market and was seen a test of the region’s market conditions following the tensions between Iran and the prospect of military conflict.
The yield on the sukuk stands at 4.25% while the issuance will last for seven years. Al Rumaihi said that the proceeds from the sukuk will be used to help diversify Mumtalakat’s investments in various sectors.
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