Bapco Energies, the integrated company leading the energy transition in the Kingdom of Bahrain, has successfully completed a landmark USD 1 billion 10-year Reg S Sukuk issuance with a concurrent capped tender offer for up to 25% of its outstanding USD 1 billion 7.5% Notes due 2027, reinforcing its commitment to financial prudence and market leadership.
The tender offer, launched on 13 January 2025, saw robust participation, with more than USD 200 million of Notes tendered and accepted by Bapco Energies. The final settlement of the tender offer was successfully completed on 13 February 2025.
USD 1 Billion Sukuk Issuance – A Milestone Transaction
Bapco Energies returned to the international capital markets with a landmark USD 1 billion 10-year Sukuk offering on 16 January 2025. The issuance was met with overwhelming demand, attracting an order book exceeding USD 4 billion—four times oversubscribed—demonstrating investor confidence in Bapco Energies’ strong market positioning and financial fundamentals.
The Sukuk issuance under Bapco Energies USD 3 billion Trust Certificate Programme, priced at a competitive 6.250% profit rate, marking the tightest ever spread to U.S. Treasuries for a Bapco Energies issuance, reflecting the Company’s strategic approach to capital market engagement. The transaction saw significant interest from a diversified global investor base, with 80% allocation to GCC investors, 12% to the UK, and 4% each to U.S. offshore and other markets.
Strategic Balance Sheet Management
The successful execution of the tender offer launched in parallel to the Sukuk aligns with Bapco Energies’ proactive capital structure optimization and liability management, allowing the Company to manage its debt maturities effectively and enhance 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.
A Testament to Market Confidence
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.
The Sukuk proceeds will support Bapco Energies’ ongoing investment in Bahrain’s energy infrastructure and strategic initiatives aligned with the Kingdom’s National Energy Strategy.
Bapco Energies remains committed to opportunistically tapping the global capital markets to optimize its liquidity pools, funding costs while ensuring sustainable growth and financial stability.
