The Central Bank of Bahrain (CBB) issued government treasury bills worth BHD70 million ($185.68 million) this week, which were oversubscribed by 112 percent. The bills mature in 91 days.
Bahrain’s central bank revealed that the issue date of the treasury bills is June 5. Meanwhile, the maturity date is September 4. Moreover, the bank stated that the average rate of interest for this issuance is 5.89 percent. That is slightly lower than 5.90 percent in its previous issue on May 29. The approximate average price for the issue was 98.532 percent, with the lowest price the central bank accepts being 98.481 percent.
With this issuance, the central bank revealed that the total outstanding value of government treasury bills reached BHD2.110 billion ($5.6 billion).
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Bahrain’s treasury bills
Bahrain’s central bank issues government treasury bills with different maturities in coordination with the Ministry of Finance and National Economy, which decides the issue amount. The central bank issues two different types of securities, conventional and Islamic. Moreover, it issues treasury bills with three different maturities. The first are three-month (91 days) treasury bills which the bank issues on a weekly basis. The central bank also issues six-month (182 days) treasury bills and 12-month (364 days) treasury bills monthly.
Bahrain’s treasury bills are available to participants including retail banks, the Social Insurance Organisation, wholesale banks, and other central banks. Individual investors and investment institutions can also participate through their retail banks or the Bahrain Bourse.
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