Bahrain Stock Exchange (BSE) and the Golden Belt 1 Company signed an agreement which will enable the listing of the $650 million Manafaa Sukuk on the bourse.

The Golden Belt 1 Company is a Bahraini closed shareholding and the majority of the company's shares are owned by Al Gosaibi Investment Company.

The agreement was signed by BSE director Fouad Rashid and the Company's Director Graham Journeaux.

The five-year sukuk issued in May 2007 shall pay an annual return of 0.85 per cent above "LIBOR" payable to the Sukuk holder every six months.

Rashid said listing Manafa'a bonds in the BSE reflects the importance of the sukuk as one of the major financing tools that companies should consider for financing their short and long term investments

"The rapid growth in the sukuk market regionally and internationally indicates the wide acceptance that this tool has among investors with different investment strategies which should encourage institutions to issue more Sukuk in order to satisfy investors' different needs," he added.

Journeaux extended his gratitude to the officials in the Central Bank of Bahrain and the BSE for their co-operation and support during the different stages of approving and listing the issue of the sukuk.

He also said the success of the issue will encourage the company to issue more sukuk in future.

As a result of the listing of the Company on the BSE, the number of bonds and sukuks listed on BSE has increased to 20 with an approximate total value of $3.45 billion.