Bahrain on 23 February launched a $600mn bond issue, less than a week after its credit rating was downgraded two notches to junk status (BB) by Standard and Poor’s (MEES, 19 February).

Bahrain initially cancelled a $750mn bond sale after the downgrade, but decided to reopen it this week at a reduced $600mn, consisting of a $275mn five-year tranche with a yield of 5.95% and a $325mn ten-year tranche with a yield of 7.65%. (CONTINUED - 417 WORDS)