Bahrain decided not to process the bids of Qatari investors for its largest-ever bond offering after severing ties with Qatar in June.
Qatari investors who submitted bids for Bahrain’s US$3 billion debt sale were not given allocations due to the ongoing crisis, the information was given by two people familiar with the matter.
Bahrain last week completed a three-tranche issue after receiving bids worth $15bn. Bahrain, like other oil-exporting countries across the region, has made repeated use of international debt markets to bolster public budgets since energy markets slumped.
Moody’s Investors Service reduced Bahrain’s rating to B1 in July, four levels below investment grade. The country is rated junk by S&P Global and Fitch Ratings Ltd.
JP Morgan Chase, Citigroup, BNP Paribas, Gulf International Bank and National Bank of Bahrain arranged the offering, with maturities ranging from seven to 30 years.