Bapco Energies completes $1bn Reg S sukuk issuance
The Bahraini energy giant returned to the international capital markets on January 16, 2025, with this 10-year sukuk offering.
The issuance was met with overwhelming demand, attracting an order book exceeding $4 billion, representing a four-fold oversubscription. This strong interest highlights investor confidence in Bapco Energies' robust market position and financial strength.
The tender offer, launched on 13 January 2025, saw robust participation, with more than $200 million of Notes tendered and accepted by Bapco Energies.
The sukuk issuance under Bapco Energies $3 billion Trust Certificate Programme, priced at a competitive 6.250% profit rate, marked the tightest ever spread to US Treasuries for a Bapco Energies issuance, thus reflecting the company's strategic approach to capital market engagement.
The transaction drew a diversified global investor base, with 80% allocated to GCC investors, 12% to the UK, and 4% each to US offshore and other markets.
The parallel execution of the tender offer and sukuk issuance aligns with Bapco Energies' proactive capital structure optimisation and liability management, allowing for effective debt maturity management and enhanced financial flexibility.
The repurchase of the notes supports Bapco Energies' long-term financial strategy, strengthening its balance sheet while maintaining liquidity for future strategic investments, it stated.
Bapco Energies' Group CEO Mark Thomas said: "These transactions underscore our commitment to disciplined financial management and proactive investor engagement. The strong participation in the tender offer and the success of our sukuk issuance highlight Bapco Energies' resilience and the market's confidence in our strategy."
"We continue to position ourselves as a key player in Bahrain's energy transition and a trusted issuer in global capital markets," he stated.
According to Thomas, the sukuk proceeds will support Bapco Energies' ongoing investment in the kingdom's energy infrastructure and strategic initiatives aligned with the National Energy Strategy.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily Tribune
8 hours ago
- Daily Tribune
Bahrain to Host Middle East Oil, Gas, and Geosciences Conference
Under the patronage of His Royal Highness Prince Salman bin Hamad Al Khalifa, Crown Prince and Prime Minister, the Kingdom of Bahrain will host the Middle East Oil, Gas, and Geosciences Conference and Exhibition (MEOS & GEO) from September 16 to 18 at the Bahrain International Exhibition & Convention Centre. The event will be held under the theme: 'Energy for a Prosperous Future: Leading a Sustainable Tomorrow.' On this occasion, Dr. Mohammed bin Mubarak bin Daina, Minister of Oil and Environment and Special Envoy for Climate Affairs, highlighted Bahrain's commitment, led by His Majesty King Hamad bin Isa Al Khalifa and guided by the Crown Prince, to advancing a sustainable and diversified energy sector. He emphasized that Bahrain continues to implement initiatives and projects that support sustainable development and strengthen the Kingdom's position as a regional hub for clean and renewable energy. Dr. Daina also noted that the conference, established in 1979, has become a key platform for regional and international cooperation in energy and geosciences. Its continuity over four decades underscores its status as a global venue for knowledge sharing and dialogue among specialists, engineers, and technicians from national, regional, and international oil companies. He added that Bahrain's hosting of this major event reflects its ongoing commitment to innovation, capacity building, and the transition toward sustainable energy and a low-carbon economy. Mohammed Ibrahim, Managing Director of Informa Markets, which organizes the event, said the committees from global companies are preparing programs and activities that highlight the conference's importance. He praised the continuous support of the Ministry of Oil and Environment in ensuring the event's success in Bahrain. The conference will address key challenges facing the energy sector amid global shifts toward sustainability and clean energy. Discussions will focus on advanced technical solutions in areas such as artificial intelligence, digital transformation, green hydrogen, petroleum geology, reservoir engineering, and resource extraction technologies. Organized by Informa Markets in coordination with the Ministry of Oil and Environment, and in collaboration with the Society of Petroleum Engineers, the Society of Exploration Geophysicists, the European Association of Geoscientists, and the American Association of Petroleum Geologists, the event is also supported by several Bahraini, Gulf, and international companies. The conference program includes keynote sessions, technical papers, and an exhibition spanning over 18,000 square meters, showcasing hundreds of global companies and the latest exploration and production technologies. Attendees will also have access to live laboratories, interactive electronic poster areas, a dedicated platform for startups, digitization zones, truck and transport solutions displays, and programs for young professionals and students aimed at inspiring the next generation of oil and gas specialists.
Daily Tribune
8 hours ago
- Daily Tribune
Hajj package prices to soar 20% as new tent rules drive up costs
TDT | Manama Bahraini pilgrims who hoped for more affordable Hajj packages are instead confronting a steep price shock, as campaigns confirmed that 2026 packages will cost up to 20 percent more. The increase comes after last year's unexpected losses, with organisers citing higher operational expenses, particularly new requirements for tents in Arafat and Mina. Rising costs The reversal from earlier savings hopes to rising costs is striking. Campaign operators, who declined to be named, said expenses linked to new service standards had forced them to increase prices by BD200 to BD250. The adjustment translates into a 15 to 20 percent rise across most packages. A source added that the hikes are seen as necessary to prevent a repeat of last year's financial setbacks. Regulatory spotlight The Ministry of Justice, Islamic Affairs, and Endowments has already received 67 applications from Bahraini campaigns seeking approval to operate next season. A meeting between the operators and the Supreme Committee for Hajj and Umrah Affairs is expected in the coming weeks to review preparations. Dr. Ali Ameen Al-Rayyes, Director of Religious Affairs at the Ministry and Deputy Head of Bahrain's Hajj Mission, confirmed that new regulations will soon take effect. The rules will prevent campaigns from advertising packages or prices until they receive official approval. Transparency push Campaigns may still hold promotional exhibitions, but only if their content exactly matches the ministry-approved profile published online. Al-Rayyes stressed that the changes aim to build trust by ensuring pilgrims receive accurate and reliable information. The regulations will also prohibit free Hajj offers or competitions that promise packages, closing the door on misleading promotions. For pilgrims, the season ahead will bring clearer safeguards and stricter oversight, but it will also place a heavier burden on families already budgeting carefully for the spiritual journey of a lifetime.
Daily Tribune
a day ago
- Daily Tribune
Bahraini Hajj Campaigns Plan 20% Price Hike for 2026 Season
Several Bahraini Hajj campaigns have confirmed to Al-Ayam their intention to increase the prices of their packages for the upcoming 1447H (2026) season by up to 20%. The move comes after many campaigns faced financial losses last year due to rising operational costs and unexpected expenses shortly before the season began. Campaign organizers, who requested to remain anonymous, explained that most of the new costs are linked to services in the Arafat and Mina areas. In particular, new requirements for pilgrims' tents have led to higher preparation costs. The expected price increase for packages is between 200 and 250 Bahraini dinars, roughly 15–20%, with most campaigns choosing this approach to avoid future losses. Sources also revealed that a meeting between Hajj campaigns and the Supreme Committee for Hajj and Umrah Affairs at the Ministry of Justice and Islamic Affairs is expected within the next two weeks to discuss arrangements for the new season. According to the Supreme Committee, 67 applications have been received from Bahraini Hajj campaigns wishing to operate during the next season, following the closure of submissions on August 1. Dr. Ali Amin Al-Rais, Director of the Religious Affairs Department at the Ministry and Assistant Deputy Head of Bahrain's Hajj Mission, explained that the ministry will soon issue guidelines for announcing campaign packages, services, and prices to ensure accurate and effective evaluations. Al-Rais emphasized that campaigns will only be allowed to advertise their packages and prices after receiving official approval and having their profiles certified. Individual promotional exhibitions for each campaign are permitted, provided they align with the approved profile published on the official website. The new guidelines will also include additional rules to enhance transparency, including prohibiting free Hajj offers or competitions promising Hajj trips. Al-Rais stressed that the goal is to improve credibility and provide clear information to pilgrims before signing contracts.
