BAHRAIN, Jan 14 (Reuters): Bahrain has launched direct sales of local
currency government debt through its securities exchange, in an effort
to broaden the investor base for its debt as sliding oil prices put
state finances under pressure.
Bahraini and non-Bahraini investors, both individuals and institutions, can now buy government bonds and sukuk from the primary market via licenced brokers at Bahrain Bourse, the bourse said, adding that it was the region's first such system.
Previously, government debt was mostly sold to a group of qualified banks which could then sell the debt on to other investors, although little secondary market trading took place.
The new system is part of efforts by the central bank and the bourse to develop Bahrain's capital markets and increase their contribution to economic development, the bourse said.
Bahraini and non-Bahraini investors, both individuals and institutions, can now buy government bonds and sukuk from the primary market via licenced brokers at Bahrain Bourse, the bourse said, adding that it was the region's first such system.
Previously, government debt was mostly sold to a group of qualified banks which could then sell the debt on to other investors, although little secondary market trading took place.
The new system is part of efforts by the central bank and the bourse to develop Bahrain's capital markets and increase their contribution to economic development, the bourse said.
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