Nogaholding, the investment and development arm of Bahrain's National Oil and Gas Authority (Noga) has announced the establishment of its $3 billion, 144A/Reg S, Global Medium-Term Note (GMTN) Programme, and the successful close of its inaugural issuance of $1 billion notes thereunder.

 

With a maturity date in 2027, the notes, which have been rated at the sovereign level by top international agency Fitch, were substantially oversubscribed, with the order book reaching $3.8 billion, said a statement from Noga.

 

Nogaholding conducted investor meetings between October 10 to 17 with a delegation led by Shaikh Mohamed bin Khalifa Al Khalifa, the Minister of Oil and chairman of nogaholding and members: Dr Dafer Al Jalahma, the acting chief executive, Qaisar Zaman, the general manager investments and Hassan Al Alawi, the manager portfolio management 

 

The issuance targeted professional investors in the US, UK, Europe and Asia, as well as the GCC, and followed a successful 5-day roadshow conducted in New York, Boston, London, and UAE. 

 

Commenting on the bond success, Shaikh Mohamed bin Khalifa Al Khalifa, the Minister of Oil and chairman of nogaholding said: "This is our debut into the international debt capital markets and we are pleased with the outcome. Our ongoing strategy at nogaholding is to invest and further grow the oil and gas sector in the Kingdom of Bahrain and position the country as a key international player."

 

"I would also like to extend our thanks to the programme partners for their valuable support in marking nogaholding's debut issuance a success. We are optimistic about the economic impact that this issuance will have, building on nogaholding's financial position and growth prospects, of which we are proud." he added. 

 

Dr Al Jalahma said: “We have tapped into the international markets for the first time, which is a significant milestone achievement for our team."

 

"The bonds were placed with investors from Europe, US and Asia and we are proud of the volume of interest which is a reflection of their confidence in our future plans," he added.

 

The international, regional and local partners which participated in nogaholding's first global bond issuance include: UK-based Verus Partners, in its capacity as financial advisor for nogaholding, Citigroup Global Markets Limited and JP Morgan Securities, in their capacities as joint global coordinators, joint bookrunners and joint lead managers and Arab Banking Corporation, BNP Paribas, Gulf International Bank and HSBC Bank in their capacities as joint bookrunners and joint lead managers.

 

In addition to these entities, global law firms Latham & Watkins and Allen & Overy too were part of the bond issuance in their capacities as international legal counsel to the issuer, and international legal counsel to the joint lead managers respectively, and local law firms Zu’bi & Patterns and Hassan Radhi & Associates in their capacities as Bahraini legal counsel to the issuer and Bahraini legal counsel to the joint lead managers respectively.

 

Nogaholding, which is 100 per cent owned by the Government of Bahrain, plays a fundamental role in the execution of the kingdom’s policy in the oil and gas sector and stewardship of its investment in oil, gas and petrochemical assets.

 

Its main portfolio includes the Bahrain Petroleum Company (Bapco), The Bahrain National Gas Company (Banagas), The Bahrain National Gas Expansion Company (Tawseah), The Bahrain Aviation Fuelling Company (Bafco), The Bahrain Lube Base Oil Company, The Gulf Petrochemical Industries Company (GPIC), Tatweer Petroleum, Bahrain LNG and Bahrain Gasoline Blending.-TradeArabia News Service